Annual Report on Corporate Responsibility Contents / Corporate Responsibility 334
CONTENTS GUIDE OF THE ANNUAL REPORT ON CORPORATE RESPONSIBILITY 2009 0. Introduction (Pg. 335) 6. Suppliers (Pg. 393)
6.1 Procurement Management System (Pg. 393) 1. Corporate Responsibility in Iberia 6.2 Responsible procurement (Pg. 394) (Pg. 339) 6.3 Supplier payment tools (Pg. 395)
1.1 Corporate Responsibility Framework (Pg. 339) 7. Employees (Pg. 396) 1.2 Impact analysis (Pg. 343) 1.3 External assessment (Pg. 344) 7.1 Workforce and labour relations (Pg. 396) 1.4 Prizes and recognitions obtained in 2009 (Pg. 345) 7.2 Satisfaction, internal communication and motivation (Pg. 398) 2. Stakeholder engagement (Pg. 347) 7.3 Training and development (Pg. 400) 7.4 Employee services: IBpersonas (Pg. 404) 2.1 Public positions (Pg. 351) 7.5 Ethics and Codes of Conduct (Pg. 404) 7.6 Equality opportunity and diversity (Pg. 406) 3. Environment (Pg. 354) 7.7 Work and family reconciliation policies (Pg. 406) 7.8 Health and safety at work (Pg. 407) 3.1 Environmental management in Iberia (Pg. 354) 7.9 Welfare benefits (Pg. 409) 3.2 Flight operations: Climate Change (Pg. 358) 7.10 Corporate citizenship (Pg. 410) 3.3 Flight operations: Local Air Quality (Pg. 363) 7.11 Employment of disabled workers (Pg. 412) 3.4 Noise in the vicinity of the airport (Pg. 364) 3.5 Ground operations: Greenhouse gas emissions (Pg. 366) 8. Society (Pg. 413) 3.6 Ground operations: Consumption of resources (Pg. 369) 3.7 Ground operations: Waste (Pg. 370) 8.1 Millennium development goals (Pg. 414) 3.8 Nature protection (Pg. 371) 8.2 Participation in Associations and Foundations (Pg. 416) 8.3 Responsible investment (Pg. 418) 4. Customers (Pg. 373) Annexes (Pg. 421) 4.1 Iberia passengers: the essence of our existence (Pg. 373) 4.2 Iberia Cargo customers (Pg. 382) 4.3 Iberia Maintenance customers (Pg. 382) 4.4 Iberia Airport Services customers (Pg. 382) 4.5 Guarantees for all our customers (Pg. 383)
5. Shareholders (Pg. 385)
5.1 Performance of the different Iberia businesses in 2009 (Pg. 385) 5.2 Risk management (Pg. 387) 5.3 Fraud prevention and anti-corruption measures (Pg. 388) 5.4 Good Governance (Pg. 388) 5.5 Innovation management (Pg. 389) 5.6 Brand management (Pg. 390)
Chairman's Statement 7
CHAIRMAN'S STATEMENT
"A difficult year, but strategic for the future of Iberia"
2009, the most important facts and figures of which collapse of world trade. Iberia suffered an 11.6% drop in are set out in detail in this Annual Report, was demand, which clearly reflects the deepness of the unquestionably the worst year that the air transport recession. Even so, there was a slight upturn in the last industry has had to face, which has also been reflected in quarter with a year-on-year growth of 10.5% in traffic. Iberia’s earnings. Nevertheless, I trust that this year will be This drop in demand, together with the lowering of remembered in the history of our company more for the prices owing to the market situation and tough strategic decisions made than for the earnings obtained, competition, had a huge impact on the company’s which we hope will be just a snag in an otherwise revenues, which fell by 19%, this being the factor that outstanding track record. most affected the company’s year-end earnings. According to the International Air Transport In view of the evolution of revenues and the Association (IATA), the losses in 2009 were among the complicated economic environment, the company made a largest ever recorded in this sector, with provisional tremendous effort to reduce its operating costs, cutting estimates in December putting airline accounts some 11 them by 12% over the year, but this was obviously not billion dollars in the red. More than 30 airlines disappeared enough to offset the drop in revenues. This difference or were bought up or taken over. Just in Europe, the air between the drop in revenues and the reduction of transport industry is estimated to have lost 100,000 jobs expenses (19% and 12%, respectively), largely explains our and 100 million passengers. final results, with net losses of 273 million euro, compared Iberia did not escape the adverse effects of the year. with a profit of 32 million in 2008, when the industry was Firstly, both passenger and cargo traffic plummeted. The starting to feel the pinch of the crisis. drop was particularly severe in our Business Class as a Counterbalancing these results, the MRO business result of the crisis and the cuts made by all companies. increased its revenues from third parties by more than 4%, However, the performance of our Business Plus improved closing the year with a profit. Iberia Mantenimiento has in the second half of the year on long-haul routes, with a become a world benchmark in this industry, not only for reduction of just 6%, compared to the 20% experienced in its specific weight in market share -it is among the top 10 the first half of the year. companies in the world- but also for the technical Cargo transport was also hard hit by the severe competence and efficiency of the Iberia MRO workshops.
Chairman's Statement 8
The Airports division has also achieved a noteworthy critical year, Iberia has considerable financial strength, its performance. In an extremely complicated environment, accounts being among the healthiest in the sector, with with a drop of 11% in global airport assistance in Spain 1,919 million euro cash and an on-balance-sheet debt of and when most of the companies that are customers of 1,417 million euro at 31 December 2009. Iberia have reduced their flights, this division has managed to close the year almost at breakeven point, after losses of Three major projects for the future almost 20 million euro in the previous year. It has also gained 22 new customers, included in its services area, and At the beginning of this letter, I mentioned that 2009 increased its market share by almost one point in Spain, will probably be remembered in Iberia for the strategic probably the country that has made most headway in the decisions adopted. During the year, impetus has been deregulation of this sector in Europe. given to three major projects that will mark the future of Another of the positive aspects highlighted from last this company: Plan 2012, the planned merger with British year is the company’s fleet utilisation, which has been Airways and the joint operation of North Atlantic routes raised to 10.3 hours a day (block hours per aircraft), up with British Airways and American Airlines. 3.7% year on year. This was achieved by resizing the fleet, These three major projects are designed to achieve withdrawing 10 units, and by cancelling aircraft leases, growth in long-haul operations, reorganise short and postponing deliveries and even temporarily parking some medium haul operations so that the network is covered in units. conditions of sustainability and competitiveness, and take The company also efficiently adjusted capacity to an active role in the progressive consolidation of the demand, maintaining its load factor at similar levels to the industry, guaranteeing Iberia’s position among the leading previous year. We reduced capacity by 6% while traffic airlines worldwide. dropped by 6.2%, so the load factor only fell by two In the short and medium haul, we are aware that we decimals to 79.8%, which is still one of the highest among cannot just stand by and watch the evolution of the European network airlines. market, in which new rivals are trying to push the large Despite that reduction of capacity, the company network airlines, such as Iberia, out of their traditional managed to maintain its market share on the most markets. Consequently, we plan to transform our short strategic routes, those joining Europe to Latin America and and medium haul operations gradually into a competitive Madrid to the rest of Europe. In the former, Iberia is still product that meets the new demands on the market. firm leader, with a market share of 20.1% in 2009, barely In the long haul, Iberia has a clear leadership in routes three decimals less than the previous year; and 23.6% in between Europe and Latin America. We have made Business, on a par with 2008. Between Madrid and Europe, enormous investments in our product, with considerable the market share was 41.6%, up one decimal on the commercial efforts and focussing almost obsessively on previous year. customers, which will enable us to take advantage of Before closing my comments on the economic market growth and corner an increasingly large share of aspects, I must mention the financial health of our that market. company. Despite the normal deterioration in such a
Chairman's Statement 9
The agreement between Iberia, American Airlines and Spain, its operating and financial base in the UK and both British Airways to jointly operate the North Atlantic is also the Board of Directors and the Executive Committee will be making progress. This is a vast project involving the joint mixed. If everything goes according to plan, the merger operation of all the routes between Europe and the United will be completed by the end of this year. States, Canada and Mexico. It is also an opportunity for In 2009, in spite of the crisis, Iberia continued to excel Iberia and our customers to compete on equal terms with in its corporate responsibility policy and was one of the other alliances and embrace a market of extraordinary few airlines in the world to be included, for the fourth year possibilities with new destinations to be included in the in succession, in the selective Dow Jones Sustainability network. World Index. For the first time this year, the company obtained the highest score in the sector in environmental “Iberia has very strong financial health, sustainability, which is proof of the company’s zeal for one of the best in the sector” making its business compatible with environment-friendly
As for the merger with British Airways, the actions. Another prestigious index in which Iberia was also Memorandum of Understanding (MOU) was signed in confirmed is the FTSE4Good Ibex, which rewards good November 2009 and the Merger Agreement in April 2010. practices in social performance, business ethics and According to these documents, a new Spanish enterprise, environmental performance. International Consolidated Airlines Group, will be the A final thought. 2009 was a difficult year, but at the owner of both operators, Iberia and British Airways, which same time promising, because we have laid the will maintain their own brands, operations, income foundations of major projects for the future. Iberia has statements, managers and boards of directors. The defined goals for success and we are working towards proprietary company, which will, among other duties, them. We trust that you will accompany us on this journey, define strategies and see that the intended synergies are the ultimate aim of which will always be to offer our best achieved, will have its registered office and tax residence in to our customers, employees and shareholders.
Antonio Vázquez Romero President of Iberia Corporate Responsibility / Introduction 335
0. INTRODUCTION
About this Report
The Corporate Responsibility Report of Iberia, L.A.E., S.A. – hereinafter Iberia or the company – is published every year to meet the reporting demands of the different stakeholders in respect of its economic, social and environmental impacts. This Report supplements the financial and corporate governance reporting laid before the General Shareholders’ Meeting, which can be downloaded from Iberia’s web site: (http://grupo.iberia.es), where previous years’ reports can also be consulted. To assist comprehension, the information is structured into chapters dedicated to the different stakeholders of Iberia, applying the Corporate Responsibility Policy and Framework adopted by the company, which are described in section 1.1 of this Report. The information contained in this report has been approved by the senior management and the board of directors of the company and verified externally by AENOR, recognised certification body, according to the Global Reporting Initiative, GRI 3.0 (G3) guidelines and principles (see assurance report in the Annex hereto).
Self-declaration of A+ application level of the G3 guidelines Both the external checking of this report and the contents and indicators set out herein correspond to the highest degree of compliance (A+) with the recommendations made in the Global Reporting Initiative
Profile of Iberia, Líneas Aéreas de España, S.A.
Iberia is the leading airline in Spain and on the Europe-Latin America market. It is the 18th company in the world in terms of passenger transport. It flies to more than 120 destinations all over the world, and operates in 45 countries throughout Europe, America, Africa and the Near East. It has one of the most modern fleets in the sector, with more than 109 aircraft. It has a human capital of over 21,293 employees. Iberia has been listed on the Spanish stock exchange since 2001 and is included in the selective IBEX 35. In 2009-10, it is a member of the Dow Jones Sustainability Indexes, World and Stoxx, and the FTSE4Good IBEX.
Founding member of oneworld, a worldwide airline alliance covering the entire planet. Ninth company worldwide in Maintenance, Repair and Overhaul services (MRO), providing services for more than 100 customers all over the world. Leading operator in Airport services – ground assistance for passengers and aircraft – in Spain, operating at almost all Spanish airports.
Progress in the Iberia – British Airways merger
An agreement was announced in November 2009 between British Airways PLC and Iberia LAE SA for a merger between equals in 2010, with a view to creating one of the largest air transport groups in the world, with significant benefits for the stakeholders of both companies, especially their customers. Corporate Responsibility / Introduction 336
The air transport sector
Air transport is a global strategic sector, with an economic impact estimated at 3 trillion dollars, equivalent to 8% of the world GDP. It generates 29 million jobs worldwide, including direct, indirect and induced employment. The sector accounts for only around 2% of the CO2 emissions. The infrastructure uses only a small area of land, estimated at 1% for the European Union. For more information on the economic, social and environmental impacts caused by air transport, see: www.atag.org/files/ATAG%20brochure-124015A.pdf
The air transport market currently faces the following challenges:
The economic crisis was behind the widespread drop in traffic in 2009, especially among business passengers, denting airline profits. The expansion of low cost carriers and alternative means of transport, such as the high speed train, is causing a loss of market share on the domestic markets of traditional network carriers. In Europe, network carriers are tending to amalgamate. There have been sharp fluctuations in fuel prices in recent years, cutting into airline profit margins. The congestion of air traffic, especially in Europe, curbs growth of the business. The emerging markets of Asia – especially India and China – and the Middle East will make competition tougher on long haul routes.
In Iberia, the passenger and cargo air transport business is supplemented with another two businesses:
MRO: Maintenance, Repair & Overhaul, and Airport Services: Ground assistance (handling) for passengers and aircraft.
Each of these businesses has its own market characteristics and stakeholders, which are described elsewhere in this Report. Corporate Responsibility / Introduction 337
A year of changes for Iberia
A number of very important events occurred within the company in 2009, some of which particularly affected its main stakeholders:
In view of the repercussions of the crisis, the company implemented a rigorous Contingency Plan right from the beginning of the year, intended to maintain its financial strength, cut costs and defend its revenues on the principal markets. Planned investments were slowed down, except those designed to improve customer service. The VII Collective Agreement for Pilots was signed in April, ensuring stability in a critical year for the company. In July, the Board of Directors passed a resolution to relieve the former Chairman, Fernando Conte, of his duties, appointing Antonio Vázquez Executive Chairman of the Board and CEO and Rafael Sánchez-Lozano Managing Director. The merger between Vueling and Clickair also took place in July, with Iberia as majority shareholder and industrial partner; the agreement included an undertaking to remain in the capital of the merged company. The new Iberia Strategic Plan, Plan 2012, was presented in October, with the goal of recovering profitability in the core business of air transport, to guarantee the company’s viability and turn it round. The company’s organisation was restructured to bring it in line with this strategy:
Iberia in the sector: oneworld
Iberia belongs to one of the largest three airline alliances worldwide, oneworld, along with American Airlines, British Airways, Cathay Pacific, Finnair, Japan Airlines, Lan Chile, Malev, Mexicana, Qantas and Royal Jordanian. 2009 has been especially significant for oneworld, as it celebrated the tenth anniversary of its creation, 10 years in which it has become the most profitable alliance of the three that exist. Corporate Responsibility / Introduction 338
oneworld has a total fleet of 2,250 aircraft. It operates at 700 airports in 150 countries, with over 9,000 flights a day, which means a take-off or landing every five seconds, and directly employs more than 300,000 people, distributed throughout the world. Since its foundation, its maxim has been customer service quality, since this enables the associated airlines to increase and improve the range of products and services they offer their customers, enabling them to travel practically anywhere in the world and benefit from the services provided jointly by all the airlines. A new member joined oneworld in November 2009, Mexicana de Aviación. Iberia acted as sponsor of the Mexican airline, leading the process for its incorporation in the alliance for a year and a half. In other words, Iberia planned and coordinated the process and guaranteed that Mexicana would meet all the requirements to join oneworld. The Russian airline S7 Airlines is expected to join the alliance in 2010, which will add 54 destinations and eight new countries to the oneworld network.
Iberia in the sector: associations
Iberia is also a member of national and international air transport organisations committed to a responsible development of the air industry worldwide:
IATA: International Air Transport Association
AEA: Association of European Airlines
ALA: Association of Airlines operating in Spain
ACETA: Association of Spanish Air Transport Companies
ATAG: Air Transport Action Group, whose members include representatives from all sectors of the industry: airlines, airports, air navigation service providers, airline pilot and air traffic controller unions and travel and tourism associations. It aims to foster sustainable development of infrastructures and air services worldwide. ATAG has created a web site, www.enviro.aero, to announce and inform on these principles, backed and financed by the commercial aviation industry. Corporate Responsibility / Corporate Responsibility in Iberia 339
1. CORPORATE RESPONSIBILITY IN IBERIA
1.1 Corporate Responsibility Framework
Iberia regularly updates its Corporate Responsibility – hereinafter CR - management framework to adjust it to current trends and brings it in line with current strategic guidelines. The framework defines the responsibilities of the areas with constant relations with Iberia stakeholders and that coordinate the CR-related management systems:
These responsibilities have been updated according to the changes made in the organisation structure in October 2009. One of the new aspects of this new organisation is the creation of the Corporate Responsibility unit within the Internal Audit and Quality management, having as its main duties:
Coordinate preparation of the Annual Corporate Responsibility Report and the necessary documents for presenting Iberia’s candidacy for the sustainability indexes. Promote the Corporate Responsibility Policy approved by the Board of Directors, supporting actions to be developed by the areas of the organisation involved and adapting the relevant information on Intranet and Internet. Monitor and constantly assess the effectiveness of the CR Framework in respect of best practices, recommending and proposing any necessary adjustments. Corporate Responsibility / Corporate Responsibility in Iberia 340
In compliance with the recommendations of the Spanish Unified Good Governance Code and pursuant to the Regulations of the Board approved on 22 May 2008, the Board is responsible for approving the company’s CR Policy. The review process culminated in an agreement on the common Corporate Responsibility Framework, consisting of:
Concept of Corporate Responsibility: what the company understands by CR. CR Instruments: the bases for effective CR management in Iberia. Corporate Responsibility Policy: the principles and objectives of CR and how they are developed and applied in the different management areas of the company. Scopes of application of CR: the principle CR-related management issues. Spheres of influence: the stakeholders and their relationship with the company. International standards: what international CR initiatives the company supports and applies.
Concept of Corporate Responsibility:
In Iberia, CR is the shared commitment to create economic and social value, respecting the environment and taking into account the expectations of stakeholders at all times.
Corporate Responsibility Instruments
The bases for ensuring adequate CR management and reporting in Iberia are:
Corporate Responsibility Policy
Iberia acts in accordance with a set of principles that enable it to continue growing in line with the services demanded by its customers, within a framework of respect and preservation of the environment, while collaborating actively in welfare actions, thus contributing to the development of the societies in which it operates. Corporate Responsibility / Corporate Responsibility in Iberia 341
These principles are summed up in the mission, vision and values of the company, shared across the board:
OUR MISSION
Iberia’s mission is to offer air transport, airport services and aircraft maintenance services that come up to our customers’ expectations and create sustainable economic and social value.
OUR VISION
Iberia aims to be leader in customer satisfaction, innovation and economic and social performance: - Perceived as leader on the domestic, European and Latin American markets. - Preferred by customers for the best possible value for money - Distinguished by shareholders for its sustained returns - Recognised for its transparency and its social and environmental commitment - Desired by people for their professional development
OUR VALUES
Focus on customers, creation of value, search for excellence in management, social commitment, importance of people, leadership, team work, constant improvement, adaptation to change and innovation.
The relations between Iberia and its different stakeholders are kept as direct as possible in order to be able to respond to their concerns and incorporate their suggestions in projects to enhance the company’s processes, products and services. Corporate responsibility is incorporated in the different management systems in the company: Strategic Plan, Risks, Internal Control, Safety, Quality and Environment, Occupational Health, Procurement, etc. They all incorporate assessment and continuous improvement and establish measures to guarantee sustainable management of the company’s business activities. This policy is specified in the following goals: General corporate responsibility goals in Iberia Goal 1: Maintain its leadership in return on assets (ROA), safety and reliability. Goal 2: Obtain recognition within society for its transparency, social commitment and defence of human rights. Goal 3: Apply the best environmental practices in its businesses activities, making a rational use of natural resources. Goal 4: Respond to the major concerns of the company’s stakeholders:
4.1 Guarantee the best service to its customers in terms of quality and responsibility, respecting the protection of their rights. 4.2 Create value for its shareholders, fostering respect for the environment and distribution of wealth. 4.3 Support any humanitarian projects and initiatives promoted by its employees, involving other stakeholders. 4.4 Encourage the personal, labour and social development of its employees within a framework of equal opportunities. 4.5 Promote sustainable development and good management practices among its suppliers of goods and services. 4.6 Work together with institutions, public administrations and other companies in the sector in any initiatives considered of interest. 4.7 Participate in cultural, educational, sports, social and economic development projects wherever it operates. Corporate Responsibility / Corporate Responsibility in Iberia 342
Goal 5: See that these goals are met, with permanent monitoring to pinpoint opportunities to further the company’s continuous improvement in CR management.
Scopes of application of Corporate Responsibility
In general, CR contemplates the following aspects in Iberia, all across the board, that is, all of the company’s management areas are responsible for them:
Spheres of influence
The company has identified and analysed its different stakeholders to classify them according to their importance in meeting objectives and their capacity to influence the company or be influenced by it. Corporate Responsibility / Corporate Responsibility in Iberia 343
Iberia’s stakeholders are classified below:
Strategic:
Customers and consumer associations Shareholders and investors Employees and their representatives: SEPLA, SITCPLA, STAVLA, UGT, CCOO, USO, CTA, etc. Suppliers and subcontractors
Regulatory and institutional:
Public administrations, AENA (Aeropuertos Españoles y Navegación Aérea), Civil Aviation Authority, ICAO, IATA, national and local governments
Market:
Transport sector: airline associations, rivals, alliances Tourism and business sector: tour operators, travel agencies, accommodation, etc. Maintenance & engineering sector: rivals, alliances Airport services sector: rivals, alliances
Social and airport vicinity:
Media Communities in vicinity of airports NGOs
Special in this Report: Iberia and Latin America Iberia is involved in the development of the local communities of the countries in which it operates and, for strategic and cultural reasons, it is particularly involved in Latin America. Actions and initiatives proving that historic commitment can be consulted throughout this Report.
International standards
Iberia has joined the following international initiatives, which are used as a constant benchmark in the implementation of Iberia’s RC policy:
United Nations Global Compact International Labour Organisation Fundamental Conventions Millennium Development Goals.
1.2 Impact analysis
Based on the company’s Risk Map and the Global Compact principles, in 2009 Iberia studied and prioritized its main sustainability impacts, reaching the following conclusions:
The greatest impact by the company is environmental, caused by the volume of emissions associated with climate change in its flight operations. Other environmental impacts, produced in its ground operations, are less significant. Corporate Responsibility / Corporate Responsibility in Iberia 344
Being a mean of transport, the safety and quality with which the company provides its services to customers have enormous repercussions in the public opinion. The risks concerning the ethics of its business, such as incidents of discrimination, corruption or fraud, are very small and duly controlled. The company has no significant impacts in labour, in aspects such as freedom of association, the right to collective bargaining or equal opportunities in access to employment. Owing to the nature of its business, there is no impact in respect of abuse of human rights, such as forced or child labour.
This analysis has guided the preparation of this Report, which is structured in the order of importance of the impacts analysed.
1.3 External assessment
Iberia attaches great importance to the performance assessments it receives regularly from independent third parties. They are an excellent instrument for measuring the effectiveness of its CR actions and are used as the basis for preparing the action plan and sustainability enhancement plan, in line with the company’s Corporate Responsibility Policy.
Iberia included in the Dow Jones Sustainability Index and FTSE4Good IBEX
Iberia has been included in the selective Dow Jones Sustainability World Index for the fourth year in succession. For the first time this year, the company has achieved the top score in the environmental sector.
In May 2009, Iberia was also confirmed in the FTSE4Good IBEX, the other prestigious international sustainability index.
Iberia was also included during 2009 in the KEMPEN SNS - SRI Universe index, which analyses mix-cap and small-cap European companies in three evaluation blocks: business ethics, environmental performance and social performance.
Iberia’s inclusion in these indexes is an important recognition of the efforts it has made to encourage and manage corporate responsibility. Corporate Responsibility / Corporate Responsibility in Iberia 345
In fact, the company has incorporated the information it receives from these assessments in its annual report preparation process, as shown in the following flow chart:
The information required for inclusion in these indexes is also related with the GRI standard used in this Report, presenting the company’s performance indicators in full (see the Annexes to this Report).
1.4 Prizes and recognitions obtained in 2009
Prize for Best Environmental Management: Iberia’s airport services business was awarded the prize for Best Environmental Management 2009, awarded at the Environmental Conference held by Mallorca Airport. This prize acknowledges the good work performed by Iberia, which has an Integrated Quality and Environment Management System for its ground operations, certified under international standards ISO 9001:2008 and ISO 14001:2004. Corporate Responsibility / Corporate Responsibility in Iberia 346
PREVER 2008 Prize for occupational hazard prevention: In April 2009, the Prize-Awarding Committee for the Occupational Hazard Prevention National, PREVER 2008, of the General Council for Labour and Industrial Relations and the Health and Safety at Work Authorities of the Andalusian regional government awarded Iberia the prize in the category of Undertakings and Institutions, for its work in favour of publicising and implementing risk prevention in Spanish society and work places. Condé Nast Traveller Prizes: Iberia was elected the best airline in the first edition of these prizes awarded by the prestigious travel magazine, based on readers’ votes. Those readers elected the best airlines in the tourist sector in 2008, divided into 15 categories. In addition, Vueling was elected best new generation low-cost airline. Travelranking Prizes: Iberia received the prizes for the best airline on South American routes and the airline with the best promotion, awarded by 'Agenttravel' based on the opinion of 720 travel agents throughout Spain. AMPE Prizes: The Spanish Advertising Media Association awarded prizes to Iberia in the categories of cinema, television and multimedia with three Silver Ampes for its Christmas 2008 advertising campaign. The campaign was rewarded on the basis of the following criteria: idea, creativity, quality, public awareness and correct adaptation to the advertising media. The 100 Best Ideas of the Year prizes: In the 31st edition of these prizes, the magazine Actualidad Económica selected the most outstanding innovations launched on the market in 2008 by Spanish enterprises, including the new functions for customers on the web site Iberia.com.
Iberia and Latin America Iberia received the Special Prize of the Government of Costa Rica, in recognition of the “pioneer airline in opening up the European tourist market to Costa Rica”, according to the Costa Rica Institute of Tourism. 55% of the passengers flying with Iberia to Costa Rica were from European countries other than Spain, which reflects the importance of the Spanish company in connecting the European market with the Central American country. Corporate Responsibility / Stakeholder Engagement 347
2. STAKEHOLDER ENGAGEMENT
Iberia has procedures in place for obtaining information on the expectations of its stakeholders, through well-established communication channels. The following table shows channels of communication and a summarises the main activities performed in 2009 and in progress for 2010 related with the expectations detected among stakeholders and the objectives marked out in Iberia’s CR Policy:
Expectations STAKEHOLDERS Communication channels Actions 2009/10 CR Policy Goals detected
Permanent: PISAC: Integral Customer www.iberia.com Service Plan www.iberiacorporate.com (new) AENOR Certified Service N Mark for Service Quality www.iberia.com/atencionalcliente and Customer Satisfaction www.iberia.com/iberiaplus/ Management Serviberia: 24H service Mobile Boarding Pass Direct sales offices Total compliance with EU Customer services department regulations of Internet Punctuality Iberia Plus frequent flyer programme and ticket sales CUSTOMERS: Service quality individual monitoring using CRM tools ISO 27001 Certification for Passengers Transparent Quality perceived opinion polls Information Security on prices Reports by chief flight attendants Iberia.com Special measures for Publications: Swine Flu Ronda Iberia Magazine Actions following closure of Air Comet IB Plus Magazine (new: online) Goal 1 Actions to involve Excelente Magazine Goal 4.1 customers in welfare projects (see Society Goal 4.6 chapter) More information in Customers chapter Aircraft Maintenance Business: Maintenance hangar www.iberiamaintenance.com construction project in [email protected] Barcelona (in progress). Customer satisfaction surveys, according to Punctuality GAUDI handling ISO 9001:2008 Reliability management optimisation CUSTOMERS: Quality Airlines Airport services business (handling): project (in progress). Safety http://handling.iberia.es Informes de calidad por Sustainability aeropuerto [email protected] Certification under IATA Customer satisfaction surveys, according Operational Safety Audit – to ISO 9001:2008 IOSA.
www.iberia-cargo.com E-FREIGHT: electronic Safety [email protected] cargo ticket project (in CUSTOMERS: Punctuality Cargo agents Customer satisfaction surveys, according to progress). Sustainability ISO 9001:2008 IOSA Certification. Corporate Responsibility / Stakeholder Engagement 348
Expectations STAKEHOLDERS Communication channels Actions 2009/10 CR Policy Goals detected
Permanent: Crisis: Contingency Plan Department of the company dedicated 2009 and Plan 2012 (in exclusively to shareholder and investor progress) relations: [email protected] IB-BA Merger Agreement Specific section of the Iberia web site for and commercial investors and shareholders: agreement with AA (in http://grupo.iberia.es progress) Specific, punctual information on all Vueling-Clickair merger significant events, also through the Participation in the Large Spanish National Securities Market Cap Tax Forum (in Commission (CNMV) progress) Goal 1 Stock exchange evolution and analyst Web cast: Live Goal 2 recommendations Profitability transmission on Internet of Goal 4.2 Information on structure of the capital Good events to maintain regular SHAREHOLDERS contacts with investors More information Presentations of results and strategic Governance in the plans of the company Transparency Shareholders Corporate Governance information chapter
Regular: Shareholders’ Newssheet Monthly Stock Exchange reports Annual Reports and General Shareholders’ Meeting Monthly traffic statistics & quarterly earnings reports Investors and Analysts Day Web casts (new)
Permanent: Electronic invoicing project Negotiation for suppliers and contractors (in progress). Contracting Goal 3 Feedback Permanent inclusion of Monitoring Goal 4.5 Ethics Global Compact SUPPLIERS More information Fostering of sustainability clauses in Ariba Sourcing Tool in the Suppliers good practices contracts. chapter Internal customer satisfaction surveys, AERCE workshop: fostering according to ISO 9001:2008 social responsibility in SMEs (in progress).
Permanent: VII Collective Agreement Intranet / Extranet: IBPróxima for Pilots Employee Portal: IBPersonas Collective bargaining for the 3 Agreements (in Suggestion boxes in IBPróxima and progress) IBPersonas Stability Professional development Notice boards, both online and physical Continuous plans Programme for recognition of proposals training Muscular-skeletal disorder for improvement Goal 2 Health & safety and Swine Flu prevention at work campaign (in progress) Goal 3 Regular: Combination ISO 27001 Certification of Goal 4.3 Works Councils for bargaining and EMPLOYEES of work and Information Security Goal 4.4 monitoring of Collective Agreements, of family life Equality Plans (in progress) both ground and flight staff More information Equal Actions to involve in the Employees Informative meetings to report to opportunities employees in welfare chapter management on results and objectives Welfare projects (see Society Satisfaction surveys on training received benefits & chapter) Opinion polls on services offered on assistance IBPróxima
Publications: Internal magazines: Iberiavión, Despega, OPS. Mantenimiento and Together. Corporate Responsibility / Stakeholder Engagement 349
Expectations STAKEHOLDERS Communication channels Actions 2009/10 CR Policy Goals detected
Permanent: With Spanish Ministerio Direct relations with any of the areas, de Fomento: Special case-specific. measures for Swine Flu Goal 2 and closing of Air Comet Sponsorship Agreements with Goal 3.6 With Spanish Ministerio Institutions: Spanish International Goal 4.6 INSTITUTIONS & Cooperation Agency (AECID) Collaboration de Economía y Hacienda: These and other PUBLIC CSR Participation in the Large collaborations ADMINISTRATIONS Regular: Promotion Cap Tax Forum (in progress) with institutions are described in Meetings with the Spanish Ministerio de • With AENA: Study to this Report Fomento, Civil Aviation Authorities, AENA check the environmental benefit of continuous descent approach
Permanent: IB-BA Merger Agreement www.moretravelchoices.com and commercial Goal 1 agreement with AA (in Iberia Plus. progress) Goal 4.1 Serviagencias. Vueling-Clickair merger Goal 4.2 MARKET: TOURISM Attendance at congresses, trade fairs and Growth Entry of Mexicana in Goal 4.6 & TRANSPORT forums in the sector. Integration SECTORS oneworld See Shareholders: Regular: Entry of new members in the Iberia Plus points Business Visits to Iberia ticket sales points system development Brand management
Permanent: Application of air On corporate web site: navigation, approach, http://grupo.iberia.es>CSR> landing and take-off Goal 3 Environment operating procedures to SOCIETY: Compliance reduce noise pollution (in More COMMUNITIES IN Regular: with the law progress). information in VICINITY OF Collaboration Collaboration with the the Environment AIRPORT Annual Corporate Responsibility Report authorities to define and chapter oversee new measures to reduce noise and air pollution (in progress).
Permanent: Madrid 2016 Promotion [email protected] Xacobeo 2010 Promotion Press Room at http://grupo.iberia.es (in progress) Subscriptions service Promotion of the Millennium Development “Iberia Solidarity” section in the Ronda Goals (in progress) Goal 2 magazine Transparency Promotion of customer Sponsorship agreements (Annexes) Reliability Goal 4.7 service enhancements More SOCIETY: MEDIA Rigour (specific reports in Regular: information in Speed media) the Society Press releases Credibility Specific CSR advertising chapter Press conferences campaigns Advertising campaigns Sustainability Congresses & Trade Fairs Visits ans presentations Interviews and travel with media Corporate Responsibility / Stakeholder Engagement 350
Expectations STAKEHOLDERS Communication channels Actions 2009/10 CR Policy Goals detected
Permanent: Setting-aside of space in Department of the company dedicated to the bellies of aircraft for Goal 2 social investments. transporting humanitarian Goal 3 aids “Iberia Solidarity” section in the Ronda Collaboration Goal 4.7 SOCIETY: magazine Facilities in passenger NGOs Commitment transport More information Regular: Commitment to the in the Society chapter Annual Report on Corporate Millennium Development Responsibility Goals
In addition to the information and communication channels focusing on each type of stakeholder, Iberia provides an on-line opinion poll where stakeholders can rate their assessment of this Report, at http://grupo.iberia.es, the results of which are taken into account and used to improve the information further. Any comment or suggestion on the aspects contemplated in this Report can also be sent to the suggestion box [email protected] The company is also a candidate for the GRI Readers’ Choice Awards 2010, organised by Global Reporting Initiative, the institution that publishes the guidelines used to prepare this Report. By participating, it has an opportunity to find out how effective the report is from the point of view of the needs and expectations of its readers.
Iberia in the social networks:
The following initiatives were created on Internet during 2009:
Blog: http://iberiairlines.blogspot.com/ Twitter: http://twitter.com/Iberiairlines YouTube: http://www.youtube.com/user/iberiairlines
Technological breakthroughs make communication increasingly easy and social networks on Internet are being widely developed in response to people’s natural need to contact others. Iberia, aware of this need, has decided to be present in the social networks. Iberia also created an Internet Presence Observatory in 2009, through which it:
Analyses the effects of its activities having the greatest important on internet. Confirms whether the expectations detected among its stakeholders are correct. Detects what comments are most repeated in respect of its actions, what means are used (opinion forums, blogs, etc.) and what average assessment is expressed in the comments. Finds out which stakeholders are most active. Examines the repercussions of its advertising campaigns and new products and services launched. Obtains information to control risks to its reputation. Contributes towards pinpointing opportunities to improve in CSR: Goal 5. Corporate Responsibility / Stakeholder Engagement 351
During 2009, the company participated actively, among others, in the following forums for stakeholders to exchange experiences (multi-stakeholder events):
Annual Corporate Reputation Conference, called “Reputation in the Profit and Loss Account”, organised and coordinated by the Corporate Reputation Forum in collaboration with IESE and the Reputation Institute, at which Iberia made a presentation on the Dialogue with Stakeholders. III Spanish Congress of Minority Shareholders, organised by the Spanish Association of Minority Shareholders in Listed Companies (AEMEC), at which Iberia suggested the possibility of introducing new systems for shareholder participation. Conference on Corporate Volunteer Work by companies and their employees, organised by Nuevo Lunes and Caja Duero, with the participation of representatives from companies such as Telefónica, Grupo VIPs, Iberdrola and Iberia and spokesmen and women from Cáritas, Cruz Roja, Ayuda en Acción, Manos Unidas and Intermon Oxfam. Annual Seminar of the Spanish Association of Corporate Travel Agents (AEGVE), at which Iberia presented its Corporate Responsibility Framework.
Iberia also promotes collaboration and interaction among different stakeholders, acting as official carrier for numerous national and international Fairs, Congresses and Events, the participants at which are granted special rates on Iberia flights.
2.1 Public positions
Iberia, as part of the society for which it provides its services, has taken into account the principal concerns of that society during 2009:
Economic recession: The company firmly believes that the solution to some of the causes that led to the crisis can be found in Corporate Social Responsibility. In times of crisis, sustainable management should increase and all social partners should be committed to innovation, knowledge and training as keys to competitiveness. In declarations made by the former Chairman of Iberia, Fernando Conte, to Nuevo Lunes on 23 February 2009: “It is just as important to come out of the recession as it is to come out of it well. In other words, we should take advantage of the current situation to restructure the economy; put an end to underground economy flows, with irregularities and speculative movements; develop new growth models based on the strengths of our country; and take advantage of the smaller offer of employment to increase the offer of training, for both young people and the unemployed, preparing them for the new needs on the market”. The present Chairman, Antonio Vázquez, made the following declarations to the daily newspaper Público on 29 September 2009: “When we come out of this recession, the air transport sector will be totally different and airlines will have reinvented our approach to economic and business agents for their business trips, and to individual customers for their leisure trips. This is the challenge we face and those of us who get it right will come out of the current situation much stronger”.
Iberia and the closing of Air Comet:
As soon as the Spanish Ministerio de Fomento established a mechanism for transporting those stranded at Christmas, Iberia expressed its willingness to cooperate in this emergency situation, to enable those thousands of people to return home. Iberia transported over 3,800 people, including some fifty babies. Of these, more than 2,150 travelled on special flights put on by Iberia and over 1,600 on the airline’s scheduled flights. Corporate Responsibility / Stakeholder Engagement 352
Iberia also offered special rates for the remaining stranded passengers to return, on routes to Lima, Bogotá, Havana, Buenos Aires and Quito/Guayaquil, maintaining these rates until 31 January and with discounts of 25% on average. The company sent a message out all its employees thanking them for the huge efforts they had made to mitigate the effects of the closure of Air Comet for those affected.
Climate change: Once again, Iberia has implemented its fleet renewal plans as a strategy for cutting fuel consumption and reducing its greenhouse gas emissions. In November 2008 the European Union approved a Directive to include aviation activities in the scheme for greenhouse gas emission trading within the Community. All airlines operating flights which arrive at or depart from an aerodrome situated in the territory of a Member State will be included in that scheme as from 2010.
Iberia is in favour of a system that rewards companies that adopt measures to reduce their CO2 emissions and defends a global system, coordinated by the International Civil Aviation Organisation (ICAO) not limited only to the EU, as otherwise it will generate competitive disadvantages, and that also includes mechanisms to encourage manufacturers to use the best technologies and implementation of the most efficient infrastructures, such as the Single European Sky. Iberia participates in the European SESAR programme, which aims to achieve a modern management system for European air space, focusing on customer needs. This would reduce air traffic congestion in Europe and mitigate its impact on the environment. The SESAR [Single European Sky ATM Research Programme], through which progress will be made towards the creation of the Single European Sky, was set up by the European Commission and EUROCONTROL. The most important companies and organisations in the European air sector are represented in it. The new operating procedures deriving from the SESAR will be applicable as from 2010. Iberia will contribute its knowledge and experience in the area of flight operations. With the combined efforts of airlines, companies and aeronautical enterprises, Europe will have a safe, high capacity network with a substantial increase in automated processes, including satellite navigation from take-off to landing and optimising air routes and corridors. It will thus be possible to cut flying times and fuel consumption by 6-12%. More information in the Environment chapter.
Protection of Human Rights and Humanitarian Aid: As a responsible company, Iberia incorporates and contemplates respect for human rights in its operations, based on the principles established in the Universal Declaration of Human Rights, the eight Fundamental Conventions of the International Labour Organization and the United Nations World Compact, which Iberia joined in 2004. Iberia is committed to the Millennium Development Goals through economic contributions and the donation of other resources for social action projects, especially those promoted by its employees. The company runs promotion campaigns to encourage its stakeholders to become involved in the achievement of these goals. More information in the chapter on Employees and Annexes.
Regional development and integration: Together with the franchise Iberia Regional/Air Nostrum and its subsidiary Vueling, the company covers practically all destinations on the Spanish mainland and the Balearic and Canary Islands. Air Nostrum was set up in 1994 in response to the needs for flights between the different regions of Spain. It currently offers flights to almost 60 national destinations. Corporate Responsibility / Stakeholder Engagement 353
The new Vueling has a fleet of 35 aircraft to fly to 45 destinations in Spain, Europe and North Africa, which enables Iberia to offer more direct routes to several European destinations, greater frequencies and, in short, to increase its capacity. Iberia has undertaken to remain in the capital of Vueling for at least two years and upholds an independent, profitable Vueling. Since the appearance of low-cost carriers in Spain, Iberia has always adopted a position of responsibility, advocating streamlining of the domestic market and the creation of a Spanish low-cost carrier that could be competitive, with long-term sustainable profitability. This is why it backed the talks between Clickair and Vueling in 2008 with a view to their merger. As regards the development of the High Speed Railway (AVE) Network in Spain, Iberia supports the integration of both forms of transport, building AVE stations at international airports to enable citizens to combine the two forms of transport conveniently. In fact, Iberia participates in the AEROAVE project along with RENFE, ADIF and other organisations aiming to integrate air transport with the long-distance railway networks, supported by the Spanish Ministerio de Fomento and Ministerio de Ciencia e Innovación: www.aeroave.es
Growing need to travel: Through commercial agreements with different airlines and the oneworld alliance, which is constantly gaining new members, the company offers its customers the possibility of flying almost anywhere in the world. In this regard, American Airlines, British Airways and Iberia have presented a joint business agreement to cooperate more closely on flights between Europe and North America. Together with Finnair and Royal Jordanian, they have applied to the US Department of Transportation (DOT) for antitrust immunity. The agreement also needs approval from the European Union. Iberia believes that the granting of immunity would bring considerable benefits, enabling oneworld to compete more effectively with the SkyTeam and Star alliances, which already have immunity. Customers will benefit, since the agreement will increase connection options, making it easier to travel on the combined route offered by the three airlines, having access to flight times better suited to their needs. The alliance will have a network of 400 destinations in 100 countries and more than 5,000 flights a day. The employees and shareholders of these companies will also benefit from the agreement, since the airlines will be able to enhance the quality of the products and services they offer, making them more competitive. These companies have made a web site available for their stakeholders to obtain information on this agreement: www.moretravelchoices.com, which highlights its benefits and gives stakeholders an opportunity to participate by signing a declaration supporting the application for antitrust immunity. The DOT has in fact received numerous letters from consumer associations, business organisations, airports and political representatives requesting its approval. Corporate Responsibility / Environment 354
3. ENVIRONMENT
Environmental protection has been a constant feature in Iberia for many years and is singled out as one of its corporate priorities. For this reason, the company strives unceasingly to maintain a balance between development of its business activities and their impact on the environment.
3.1 Environmental management in Iberia
In its endeavour to develop the best environmental practices, Iberia defines and regularly updates a set of measures which, based on the company’s Corporate Responsibility Policy - see Chapter 1 of this Report -, include the implementation of environmental management systems, training, motivation and awareness of its employees, regular checks, controls and audits, as well as the cooperation with its stakeholders in environmental issues. The most important environmental impacts of the company are summarised below: Corporate Responsibility / Environment 355
Environmental management systems
Environmental management systems enable organisations to develop their environmental policies and meet pre-established management objectives. The following diagram shows the main phases of a management system, in this case an environmental management system:
For its flight operations, the company establishes action plans to implement the environmental variables in the fleet renewal processes and adopt the best practices in flight operations. Iberia’s participation in national and international task forces that address these issues enables the company to adapt its policy on this matter, keeping it permanently up to date.
Iberia pinpoints and assesses the environmental aspects of its ground operations to rate the extent to which they affect the environment. It then defines its management strategy according to that rating. The company’s environmental management systems have been certified externally and its internal management systems and specific procedures cover all the activities having any environmental impact. Iberia’s airport services have been awarded the AENOR certificate for its Integrated Quality and Environment System, under the ISO 9001:2008 and ISO 14001:2004 standards, respectively. This is particularly impressive since it umbrellas under a single Integrated System the operations of around thirty stations in the national airport network, with 7,926 employees. Corporate Responsibility / Environment 356
Iberia also has an integrated Management System for its MRO business in Madrid. This is one of the broadest certifications awarded by AENOR in terms of area, variety and quantity of environmental aspects and number of persons affected, 3,824 employees.
In 2009 Iberia’s industrial areas in Madrid obtained Integrated Environmental Authorisation (AAI), which means that both the industrial installations and the procedures performed there to eliminate all kinds of pollutants (waste, effluent and air emissions) comply with the guidelines and good practices established in the EU "Integrated Pollution Prevention and Control" (IPPC) Directive. One of the most important aspects of this directive is the new focus on the industrial environment. The introduction of the single permit (Integrated Environmental Authorisation), use of Best Available Techniques and Reporting Transparency are some of the elements of this new focus.
Environmental audits
Internal audits were conducted in 2009 in the areas of Iberia with significant environmental impacts. These audits were made in the areas of Airport Services, MRO, Cargo and Medical Service. In addition and with a view to having Iberia’s environmental management checked through an external body, the sites whose Environmental Management Systems have been certified under ISO 14001:2004 were audited by AENOR in 2009. Corporate Responsibility / Environment 357
A total of 38 internal environmental audits were made in Iberia during 2009, in which 93 actions for improvement were pinpointed in the audited areas.
DISTRIBUTION OF ENVIRONMENTAL AUDITS IN 2009 IN THE DIFFERENT AREAS OF IBERIA
Parallel to this process, in 2009 the Internal Audit Department audited the process Treatment and Recycling of Vehicles at the end of their useful life. It should be remembered that Airport Services entails the maintenance and renovation of a large park of vehicles (around 1000 vehicles), management of which must comply with the applicable legal recommendations. This audit checked compliance with the applicable laws and regulations, recommending a number of good practices, which the company has already adopted.
Environmental awareness and training
Continuous training in the application of different internal environmental procedures is common practice in the company. Continuous training and awareness campaigns are provided for the technical staff on the best practices in flight operations, with the aim of reducing noise and fuel consumption, the latter being directly proportional to CO2 emissions. Furthermore, in 2009 the company continued implementing some of the proposals received through the process conducted in 2008 asking employees for ideas on how to further cut fuel consumption, an initiative seeking collaboration through Intranet IBPróxima, focusing on cost-savings and environmental awareness. With regard to the training given during the year in respect of ground operations, 50 courses were given in the Airport services area, during which the Environment Officers informed 4,070 employees on good environmental practices. In the area of MRO, courses on good practices were provided for all new employees and a Manual on the correct management of urban waste was distributed among all the relevant employees in this area. Finally, the Cargo area ran 172 courses for 1,025 employees on the correct handling of hazardous goods, a 20% increase year on year in the number of courses and participants. An energy saving campaign was also run in 2009, reminding all employees of the benefits of doing the following, among other measures:
Reducing the time that individual air-conditioning/heating equipment in offices, with a potential annual saving
of 1,400 tonnes of CO2 . Corporate Responsibility / Environment 358
Making efficient use of vehicles: turn off engines when they are not moving, maintain a constant speed adequate for each situation, etc. They could thus reduce fuel consumption up to 10% and save around 1,000
tonnes of CO2 a year. Turning off the computer, monitor and printer at the end of the day, which would give an estimated annual
saving of 1 tonne CO2 per employee.
Environmental accounting
Environmental accounting compiles financial information with a view to combining the company’s economic and environmental policies so as to achieve a more sustainable company. In Iberia, economic accounting assists decision- making in matters concerning environmental actions (See Annual Reports of the Iberia Group and Iberia L.A.E.).
3.2 Flight operations: Climate Change
According to the Intergovernmental Panel on Climate Change (IPCC), the aviation sector contributes only 2% of the total CO2 emissions generated by the consumption of fossil fuels. Nevertheless, in view of air traffic growth forecasts the sector ought to take measures to minimise the increase in these emissions.
Over the past 10 years, aviation has reduced its specific emissions of CO2 by 10% through the introduction of more efficient engines, lighter aircraft and enhanced aerodynamics. However, there is no technology available to cut emissions drastically in the short term: tests are commencing with biofuels, but as a medium-term objective.
IATA Strategy : Zero Growth in CO2 Emissions in 2020
In June 2009, Iberia and the other airlines represented on the IATA Management Committee approved the future Strategy for limiting greenhouse gas emissions by the sector. This Strategy contemplates the following goals: This Strategy contemplates the following goals:
Zero growth in CO2 emissions by 2020, i.e. the sector will continue to grow, although its CO2 emissions will not.
Enhance fuel efficiency by 1.5% p.a. on average from 2009 to 2020, since CO2 emissions are directly proportional to fuel consumption. 50% reduction of total emissions by the sector by 2050 compared to 2005. Corporate Responsibility / Environment 359
En el gráfico anterior se representa cómo estos objetivos pueden llegar a alcanzarse a través de la renovación de las flotas, la adopción de nuevas medidas operacionales, la mejora de las infraestructuras aeroportuarias y de navegación, la instalación en los aviones de mejoras tecnológicas, la utilización de biocombustibles y las normativas sobre mecanismos de mercado.
Measures taken by Iberia against climate change
Iberia’s main goal for dealing with climate change is to reduce its emissions, achieving sustained, efficient growth. The measures comprising this strategy are described below:
Fleet renewal The average age of the Iberia fleet at the end of 2009 was 7.3 years. According to IATA, the average fleet age of a traditional network carrier is of the order of 10-12 years, which means that the Iberia fleet is one of the most modern fleets in the world.
IBERIA FLEET UNIFICATION PROCESS 2005 - 2009 (% OF TOTAL) Corporate Responsibility / Environment 360
AVERAGE AGE OF IBERIA FLEET 2005 - 2009
These graphs show the composition and age of the Iberia fleet over the past decade. The unification and rejuvenation process is obvious. A unified fleet is easier to manage and, therefore, environmentally more efficient.
Operating measures
1. Iberia continued adopting measures in 2009 to reduce the weight of aircraft, which directly reduces
fuel consumption and, consequently, CO2 emissions. The company is revising its procedures for reassigning alternative destination airports for closer ones and is applying the 75% reduction in the quantity of drinking water carried. This measure has already been implemented in the A340 fleet and is intended to be developed in the A320 fleet in the first quarter of 2010.
2. The adjustments in cruise speed have also been maintained, which helps to reduce CO2 emissions. According to company calculations, an Airbus A340/300 on the Madrid-New York route flying at an
average speed of 745 km/h could save practically 2 tonnes of CO2 on the flight (approx. 0.5% of the total emissions) by lowering its speed to 735 km/h, while the difference in time of arrival would be no more than 5 minutes. This policy has been developed in 2009 in both the long-haul fleet (A340/600 and A340/300) and the short-haul fleet (A319/320/321). Other measures have been studied and adopted during 2009, such as changes in acceleration altitudes, reduction of standard thrust, thrust reverse or idling or using fewer engines while taxiing on ground. 3. It is planned to give the Iberia fleet in 2010 the possibility of sending automatic messages (ACARS, Aircraft Communications Addressing and Reporting System) indicating the fuel consumption and,
therefore, the CO2 emissions in each flight phase. This option will enable the company to develop exhaustive monitoring of these parameters, based on the best technology available, and to take additional measures to reduce consumption and emissions.
Iberia participates in the RETACDA Project (Reduction of Emissions in Terminal Areas using Continuous Descent Approach) to reduce emissions by using the continuous descent approach (CDA) when landing.
During 2009 Iberia participated in the European RETACDA project in collaboration with AENA. Continuous descent approaches are designed to use, in strict cooperation with air traffic control towers, constant descent routes with no interruptions or deviations that force the aircraft to steer off the ideal route for consumption and emissions, making it unnecessary to use any additional power to that supplied by taxiing. Corporate Responsibility / Environment 361
With these approaches, noise is reduced by 4-6 decibels in the area situated more than 18 km from the landing
runway and between 300 and 480 kg of CO2 is saved per aircraft. These approaches are currently being tested in Spain and it is hoped that they will be fully implemented during 2010. During the 2009 test period Iberia made a total of 892 landings using this procedure.
4. Energy efficiency was also improved in 2009 and emissions were reduced through flight scheduling, assignment of fleets for the different routes, fleet utilisation and optimisation of the load factor. In particular, the load factor was 79.8% in 2009, higher than that of other European network airlines, and fleet utilisation reached a record level for the company this year, with an average of 10.3 block hours per aircraft per day. 5. Iberia also upholds other measures which, although not directly within its scope of action, may
contribute significantly to reducing the CO2 emissions of its flights. In this regard, Iberia participated actively during 2009 in the CIDEFO Project to commence shared civil and military use of air spaces, making it possible to shorten routes (and, therefore, reduce consumption and emissions) in different parts of the Spanish mainland and Canary Islands. Iberia also participated in the FRAL project, which has made it possible to shorten the routes that fly over Lisbon, in Portugal.
Results obtained by adopting these measures
By applying the measures described above, the company has managed to reduce its CO2 emissions per unit carried by a cumulative 12% over the past 5 years.
EVOLUTION OF CO2 EMISSIONS OF THE IBERIA FLEET MEASURED IN GRAMMES PER REVENUE PASSENGER KILOMETRE
Although Iberia has operated a more efficient fleet in 2009 than in 2008, the CO2 emissions measured by unit transported have risen slightly, owing to the general decline in traffic, which has affected the entire sector
Iberia’s growth strategy focuses on the long haul, which leads to greater energy efficiency per passenger. Revenues from short-haul flights (less than 400 km) accounted for 0.6% of the total in 2009. Moreover, approximately half of the passengers on short-haul flights went on to take connecting flights, so the percentage of revenues from these routes was actually 0.3%. Corporate Responsibility / Environment 362
The calculation of CO2 emissions per unit carried includes the consumption of the cargo business, since in Iberia, which does not fly cargo aircraft, it is included in the consumption of passenger aircraft: Iberia carried a total cargo of 211,243 tonnes in 2009.
CONSUMPTION OF THE IBERIA FLEET MEASURED IN LITRES PER AVAILABLE TONNE KILOMETRE (2008 - 2009)
Thanks to the Iberia fleet efficiency, consumption measured by available unit (stripping out the effect of the general decline in traffic) was reduced by 2% year on year in 2009
Iberia in the European emissions trading scheme A regulation was passed in Spain in July 2009 to include aviation in the emissions trading scheme. In order to reduce greenhouse gas emissions, this market mechanism caps the total quantity of emissions of the sector. Consequently, any airlines that exceed the maximum emissions allowance established have to buy allowance from other operators or plants already subject to the scheme. The market thus provides economic incentive for the cleanest airlines and penalises those who pollute more. Through an internal task force created for this purpose, Iberia has adapted its procedures to the calculation established in the new rule and is ready for compliance as from 2012.
Iberia in the IAGOS air quality research project During 2009, Iberia formally expressed its interest in participating in the IAGOS air quality research project as from 2011. This project, included within the European Strategy Forum on Research Infrastructures, was established in 1993 and consists of fitting long-distance
aircraft with scientific instruments to analyse the chemical atmospheric composition (H22 O, O3, CO, CO , NOx), aerosols and cloud particles, assessing air quality. Corporate Responsibility / Environment 363
The aim is to obtain scientific data over a period of approximately 4 years for the final preparation of specialist reports for scientific use. Iberia will be the first Spanish airline to collaborate in a scientific project on this scale, with an Airbus 340-300.
In 2009 Iberia received the AENOR certificate for its reduction of CO2 emissions on its Shuttle service:
This certificate, the first of its kind, proves that Iberia has reduced its CO2 emissions on the Madrid-Barcelona Shuttle through fleet renewal and the reduced weight of its aircraft achieved with the new cabin interiors.
3.3 Flight operations: local air quality
Local air quality in and around airports may be affected by aircraft emissions, consisting mainly of: nitrogen oxides (NOx), carbon monoxide (CO) and unburned hydrocarbons (UHC). According to figures published by IATA, technological progress has reduced aircraft UHC emissions by around 90%. In an endeavour to meet the ACARE 2020 (Advisory Council for Aeronautics Research in Europe) objectives, research is currently in progress to achieve an 80% reduction of NOx in respect of 2000. These pollutants are not only generated by aircraft, but also by other activities related with airports, such as ground support equipment, auxiliary power units (APUs) or ground transport in and around the airport, including its accesses. The ICAO (International Civil Aviation Organisation) CO, NOx and UHC standards control emissions during aircraft operations in airport zones (taxiing, approach, landing and take-off).
COMPLIANCE WITH THE ICAO NOx STANDARDS (CAEP 1 & 2) BY THE IBERIA FLEET AT 31.12.2009 (CAEP 4 & 6 ARE NOT APPLICABLE TO THE COMPANY, THEY ARE INCLUDED AS A GOOD BENCHMARK)
This graph shows the situation of the Iberia fleet in 2009 in relation to the applicable NOx standards (CAEP 1 & 2), and other more restrictive standards (CAEP 4 & 6) which, although not applicable to it, reflect the advanced technology of the engines used in the Iberia fleet.
The measures taken by Iberia to reduce these emissions focus on fleet renewal incorporating less polluting engines and the development of operating measures such as application of the continuous descent approach (CDA). NOx emissions can be cut by up to 40% by this measure. Corporate Responsibility / Environment 364
At Madrid-Barajas Airport, where the bulk of the company’s operations are concentrated, the airport authority AENA has an air quality monitoring network (REDAIR) which continuously and automatically examines the levels of pollutants from emissions generated at low altitudes. The readings obtained are published daily to make sure that the equipment operating at the airport, including aircraft, does not generate pollution levels in excess of the standards set in the applicable regulations.
PERCENTEAGE REDUCTION OF IBERIA'S NOx EMISSIONS (BASE YEAR 2005)
This graph shows the cumulative reduction of total NOx emissions by the Iberia fleet over the period 2006-2009. Taking 2005 as the base year, the graph shows the cumulative reduction in each period. The cumulative reduction over the past 5 years is 28.75%.
3.4 Noise in the vicinity of the airport
Noise from aviation produces local impacts in areas around airports and is generated in flight operations at altitudes below 3,000 ft (approx. 900 metres). With the technological progress incorporated in modern engines and the improved aircraft aerodynamics, aircraft noise levels have been halved over the past ten years. Technological research anticipates achieving a further 50% cut by 2020. Although the total number of people affected by this type of pollution has been reduced by approximately 35% since 1998, Iberia still strives to reduce the noise footprints of its aircraft. Corporate Responsibility / Environment 365
The ICAO Noise Standards control noise pollution during flight operations (approach, landing, take-off and climbing):
COMPLIANCE OF THE ICAO NOISE STANDARD CHAPTER 3 BY THE IBERIA FLEET AT 31.12.2009 (CHAPTER 4 IS NOT APPLICABLE TO THE IBERIA FLEET, IT IS INCLUDED AS A GOOD PRACTICE BENCHMARK)
This graph shows the situation of the Iberia fleet in 2009 in relation to the noise standard applicable to it (Chapter 3) and the more restrictive standard (Chapter 4), which, although not applicable, reflects the advanced technology used in the company’s fleet.
The company complies with the operating procedures laid down by the Spanish civil aviation authorities, making a limited use of auxiliary engines in airports, reducing the use of brakes by using the thrust reverse technique and following the routes established by air control for arrival and departure at airports. Corporate Responsibility / Environment 366
Evolution of noise at Madrid-Barajas Airport
The airport authority AENA has been gradually restricting aircraft operations at Madrid-Barajas airport since 2000 to reduce noise pollution. In order to establish these restrictions, aircraft have been classified into “noise levels” (NL), according to their individual noise on take-off. There is a NL classification for the different decibels, covering a range from 0 to 16 (the closer to 0, the lower the noise level). The low noise level of the Iberia fleet is evidenced by the fact that the company does not operate any aircraft above NL 2.
NOISE OF THE IBERIA FLEET (NL) AND ITS SHARE IN THE TOTAL TAKE OFFS AT MADRID - BARAJAS AIRPORT IN 2008 AND 2009
The graph shows the distribution of take-offs by the Iberia fleet at Madrid-Barajas Airport in 2008 and 2009 according to the noise level classification. It can be seen that Iberia has reduced the take-offs of its noisier fleets (NL 1 & 2) in 2009 and has, consequently, increased the take-offs of its more silent fleet (NL 0.5) by 3 percentage points.
During 2009 Iberia participated in the European RETA-CDA project mentioned earlier, with which noise is reduced in each landing operation by 4-6 decibels in the area situated more than 18 km from the runway. The company has also collaborated with AENA in the Technical Route Analysis Group: this group aims to define and implement more adequate departure and arrival routes at Madrid-Barajas Airport and thus reduce noise in the built-up areas near that airport. In addition, at Madrid-Barajas Airport, where the company concentrates the vast majority of its operations, the airport authority AENA has a noise monitoring network (SIRMA) which detects, measures and associates the noise produced by aircraft when they fly over microphones installed in strategic areas around the airport. The readings obtained are published daily to make sure that the aircraft operating at the airport do not exceed the noise levels stipulated in the Environmental Declaration of this airport.
3.5 Ground operations: greenhouse gas emissions
The greenhouse gas emissions from Iberia’s ground operations account for approximately 1.52% of the total emissions of this nature generated by the company. The main sources of these emissions are the fixed industrial installations and the equipment required to provide ground services to aircraft and passengers (Scopes 1 & 2). However, in order to draw up a full inventory of this type of emissions, other indirect sources should also be considered, such as employee travel to their workplaces (Scope 3). These sources of emissions form part of the activities covered by the environmental certificate under ISO 14001:2004, awarded to Iberia by AENOR. This certificate guarantees control of emissions and the implementation of actions to reduce their generation. Corporate Responsibility / Environment 367
The following figure shows the main sources of emissions by Iberia in its ground operations:
The following graph shows the distribution of these emissions in 2009 according to Scopes 1, 2 and 3 mentioned above, following the GHG Protocol methods: Corporate Responsibility / Environment 368
PERCENTEAGE REDUCTION OF CO2 EMISSIONS IN IBERIA GROUND OPERATIONS (BASE YEAR 2005)
As the graph shows, emissions have been reduced by almost 40% over the past 5 years. In particular, in 2009 they were reduced by 18% (21,000 tonnes) year on year. These reductions have been achieved largely through renewal of the fleet of ground vehicles in the different areas of the company, replacing them with electric and other more energy-efficient vehicles. Another contribution has been the use of new technologies that improve energy efficiency in industrial MRO processes. Finally, the use of energy produced through cogeneration in the industrial zones is a decisive factor in the reduction of emissions, since this energy is very clean in comparison with others. More detailed information on this inventory can be found in the Annexes to this Report.
Volatile Organic Compounds
Maintenance hangar 7, used for painting aircraft, uses environment-friendly paint, with low levels of environment- damaging volatile compounds. As a result, products with VOC totalled 118 tonnes in 2009, a 4% growth year on year against an increase in production of 9%, in activities in which this type of emissions is produced.
TONNES OF PRODUCTS WITH VOC VS. MAN - HOURS AIRCRAFT MAINTENANCE IN MADRID (2009) Corporate Responsibility / Environment 369
The improvements to hangar 7 were also made taking into account the recommendations made by the European Airbus manufacturer. The new aircraft will be painted according to the manufacturer’s standards, since Iberia Maintenance belongs to the Airbus MRO Network.
3.6 Ground operations: consumption of resources
Electricity consumption
Apart from the measures and improvements applied through the Management Systems and innovating projects and awareness campaigns, investments were made throughout 2009 to improve the energy efficiency of the company’s installations, which have helped to reduce energy consumption in ground operations:
Installation of solar panels on the maintenance hangars. Construction of a photovoltaic solar energy plant in the Industrial Zone of Barajas. Replacement of generators.
Paper consumption
Paper consumption has been reduced every year since 2004 as a result of the continuous improvement achieved through the Environmental Management Systems, by setting reduction targets and through the innovating waste reduction projects. The company policy is to convert paper-consuming administrative processes into electronic equivalents. In 2008 this policy was applied in the following areas:
Iberia has launched its Mobile Boarding Card service, which enables its customers to download their boarding cards from Iberia.com to a mobile or PDA and board the aircraft directly, without printed cards, which makes the process more agile and dynamic while reducing the use of paper. Iberia is the first Spanish company to offer its customers this possibility.
Iberia pioneers the implementation and use of electronic cargo tickets, so that the documents required for the transport of cargo are produced electronically. On an internal level, a new catalogued items digitalization service has been introduced in the Documentation Centre, along with the self-issuing of discount tickets with other airlines, tickets for children under two and requests for transfer have been made available through IBPróxima/IBPersonas. Corporate Responsibility / Environment 370
This year, too, it has been decided to eliminate white paper for general use in offices, limiting its use exclusively to specific jobs. The paper provided for general use is recycled, which reduces costs by 6% and is more respectful of the environment.
3.7 Ground operations: waste
In the area of waste management, a new system of urban waste collection was introduced in the Engines Workshop in 2009 to encourage waste separation at source and will be gradually introduced in the other company buildings. This is a pilot project, intended to assess whether the containers, their locations and the system itself are suitable for installation in other work places, thus making further progress towards efficient waste management. The Iberia industrial zones could then be considered vanguard production areas by virtue of the sustainability of its processes. Corporate Responsibility / Environment 371
Other goals have also been achieved in 2009: the generation of electronic waste at Iberia’s installations in the La Muñoza industrial zone has been reduced by 3%; the installation of ramp carts to improve hazardous waste management and possible spillage in the maintenance areas; and the installation of an area in the industrial zone of Barajas to improve the collection, classification and delivery of hazardous waste to an authorised manager. Another of the measures begun in 2009 is the progressive installation of shared multifunction equipment (printer + photocopier + fax + scanner) in the offices, with the aim of reducing the number of personal printers and, therefore, the waste generated in ink and toner cartridges, while also reducing electricity and paper consumption. See the Annexes to this Report for information on the evolution and management of other environmental aspects in ground operations, such as water consumption, waste generation, sewage, etc.
Environmental Innovation
Many of the projects implemented to improve processes and quality of products and services within the company also lead to major savings of resources, thereby reducing the impact on the environment. One of the most important projects is the new MRO Hangar in Barcelona, due to be put into operation in 2010.
It is an environment-friendly infrastructure, designed to obtain maximum energy efficiency and the use of renewable energies. The project has incorporated ecologically advanced systems for the heating and air-conditioning of the hangar, for reuse of waste water and rainwater and for rationalising electricity consumption.
3.8 Nature protection
The company collaborates closely in the protection of endangered species. Iberia has been a member of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, CITES, since 1986 and, therefore, does not permit the carriage of any of these species on its flights. Similarly, it participates actively in returning unlawfully removed animals to their natural habitats. Corporate Responsibility / Environment 372
Iberia, in collaboration with the Environmental Department of the Balearic Islands Government, transported a crocodile to Cuba on one of its aircraft. The Crocodylus Rhombifer had been at the Balearic Islands Fauna Recovery Centre (COFIB).
This species, endemic to Cuba, is included in the category of maximum international protection owing to the small number of specimens in existence (between 5,000 and 6,000 in the whole world). Once in Cuba, the crocodile was taken to the Ciénaga de Matanzas Zoo, the largest wet region in the Caribbean, declared Biosphere Reserve, where it remained in quarantine for the necessary time before being taken to a crocodile farm in a local natural space. Corporate Responsibility / Customers 373
4. CUSTOMERS
4.1 Iberia passengers: the essence of our existence
Iberia has a firm commitment to its customers to guarantee quality service at every stage of their journey. The Iberia strategy, developed through the Plan 2012, contemplates enhancement of customer service quality as one of its prime objectives, by applying an Integral Customer Service Plan. The Plan began at the beginning of 2009 and consists of over fifty measures to improve customer service, classified into three fields of action:
product and service level operating processes attitudes and conduct
Different work groups were set up to study and improve all contacts with customers, from purchase to after-sales service, including experiences at the airport or in-flight. The aim is to achieve a service level in which customers perceive an excellent treatment, attract new customers and preserve existing ones. The procedure followed is set out below: Corporate Responsibility / Customers 374
Commitment to passenger rights
The company continues committed to compliance with the European Aviation Customer Commitment, a code of conduct signed on 2 July 2002 together with the other airlines in the European Airline Association (AEA), in which obligations are established such as respecting the agreed price, providing such information as may be required on the company, notifying passengers of any incidents and providing assistance, expediting the payment of refunds and attending reduced-mobility passengers and minors, among others. Iberia deals with passenger claims in accordance with the prevailing European regulations on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights (Regulation (EC) No 261/2004 of the European Parliament and of the Council of 11 February 2004). With regard to data protection, Iberia complies with the Personal Data Protection Act of 19 April 2008. It has published internal regulations on the subject and started up an Information Security Committee to guarantee the confidentiality and integrity of that information and preventing any use of such data for unauthorised purposes. In April 2009 Iberia obtained certification under ISO 27001 of the Information Security Management System, the scope of which umbrellas the processes related with Iberia.com, and the Employee Portal (IBPersonas). This means a high level of maturity has been achieved in Information Governance, to guarantee customers confidentiality (only authorised persons can have access to the information), integrity (the information and its processing methods are accurate and complete) and availability (authorised users have access to the information and its associated assets whenever they want).
Commitment to price transparency
Iberia publishes the final prices, including all the different elements comprising each price, such as surcharges for fuel, issue charges or airport taxes, such that the announced price is the final price of purchasing the ticket. In the study made by the Department of Consumption of the European Commission on compliance with EU legislation on airline ticket sales on Internet, Iberia is among the 16 European airlines that fully respect those laws and undertake to maintain that compliance in the future, for their price information transparency and consumer protection in the services offered on Iberia.com. The study consisted of simulating online ticket purchases over a period of eighteen months. In addition, a service called flex-pricer has been set up on Iberia.com, through which customers, when choosing a ticket, are offered prices for the dates before and after the date specified, so that they can choose the most favourable price. It also includes a tool that permits a flight search according to the maximum budget specified by the customer. It is thus possible to set in advance the maximum price you wish to spend on the flight, either for a particular destination or area or for a specific date. General advice for obtaining cheap prices was published in 2009 and prices have been adapted to the recession. http://www.iberia.com/consejos-para-encontrar-vuelos-baratos/ Corporate Responsibility / Customers 375
Commitment to punctuality
According to company figures, the punctuality index at level 15’ was 81.2% in 2009, a similar percentage as in the previous year. Iberia establishes numerous internal controls to improve punctuality: specific rules, watchdog committees, cause analysis and decision-making, checking of operating processes, etc.
One of the examples that show that improving punctuality is one of the company’s priorities is the campaign to increase staff awareness. In this regard, since June 2007, the main page of IBPróxima publishes daily in real time Iberia’s punctuality on the different markets in which it operates and its situation in respect of the Director Plan target: 82% punctuality.
As regards the information provided by the company in the event of delay, in 2009, within the measures contemplated by PISAC, Iberia has reviewed the reasons for delay and the messages which, coordinated with the Customer Service and Airports areas, are being used in-flight to improve the information to passengers when an incident occurs.
Commitment to quality
Iberia has several mechanisms for controlling and monitoring the quality of its processes and services, as summarised in the following figure and described below: Corporate Responsibility / Customers 376
Iberia has obtained the AENOR Certified Service N Mark for service quality and customer satisfaction management for its measurement and monitoring of service quality and customer satisfaction, communication and dissemination, claims treatment, analysis of customer expectations and Quality Plan Proving that Iberia complies with the requirements established in the “Particular Regulations of the AENOR Certified Service N Mark for Service Quality and Customer Satisfaction Management in Passenger Air Transport Operators”. To assess the Service Quality and Customer Satisfaction Management System implemented in Iberia, AENOR made an audit at the head offices in November, inspected the service provided and visited different airports. It has thus been able to verify the adequate measuring of customer satisfaction and the quality offered, as well as the reliability of the data and the transparency in their use. This new certificate supports and complements the different ISO certified Management Systems in the different areas of the company, all aimed at increasing Iberia’s focus on customers and search for excellence in the provision of its services.
Customer Satisfaction – Perceived Quality Level Customer satisfaction is sounded out in Perceived Quality Surveys (PQL, Perceived Quality Level), which measure their assessment of the quality of service received, on ground and in flight. The surveys also include a free text section for customers to make whatever suggestions they may consider necessary. The results of both numerical assessments and suggestions are processed, coded and analysed to make decisions on which aspects of the service need to improve. This model of obtaining information through online polls, with personal invitations to customers to participate in the study, was consolidated over 2009. This system offers the following advantages:
More reflective response environment. Speed in obtaining results. Easier to make improvements to the questionnaire. Larger sample size. Continuous assessment of satisfaction, eliminating the uncertainty of long periods without incoming data. Enables more adequate decision-making and better monitoring of action plans. Obtains information on the company’s position in relation to other airlines. The resulting information can be checked against that offered by the System for Measuring the Quality Obtained. Corporate Responsibility / Customers 377
The total size of the sample in 2009 was 34,279 polls answered, with a response rate of 16.3%. The overall satisfaction level reached up to the end of 2009 was 6.9 out of 10.
CUSTOMER SATISFACTION BY MARKETS AND CLASSES
During 2009 two new satisfaction indicators have been incorporated in the measuring system, the Net Recommendation Index (NRI) and the Net Loyalty Index (NLI). These indexes focus on the future behaviour of customers, measuring their propensity for recommending Iberia’s services and using them again. Being net indexes, their calculation takes into account both customers declaring themselves “promoters” of the company and “critics”, thereby obtaining a more precise idea of the effect on the company’s reputation. The overall average of both indexes in 2009 was 64.7% for the NRI and 67.7% for the NLI.
Obtained Quality Level Compliance with the service quality standards set by the company is supervised by measuring the obtained quality level (OQL). Through the method established, agents have on-line access to information on service quality obtained in over 8,500 assessments a year, analysing 300 aspects related with the service provided or customer service. Corporate Responsibility / Customers 378
As a sample of the information provided, the following graph shows the results of the measurements by services in respect of the goal set.
OQL - 2009 RESULTS BY SERVICES
For each one, the aspects related with the operating process, attention/attitude, image, physical environment, service times and the range and state of products and services are measured. Corporate Responsibility / Customers 379
Relationship with certified Management Systems Both systems for measuring quality, PQL and OQL, are part of a general quality model in the company, structured as shown in the following figure:
Dealing with claims The company considers customer claims a valuable source of information for correcting faults and bringing our services in line with their expectations and an opportunity to meet their needs. For example, in 2009 the company has altered the information provided to customers on the rates charged for its 807 telephone services for ticket changes and after-sales actions, and Iberia.com has incorporated the possibility of requesting electronic invoices for tickets, e-invoice Iberia, both of these actions introduced to meet claims from customers and consumer associations. Iberia has a Customer Relations and Quality management, whose claims management service has been certified under UNE-EN ISO 9001:2008, to centralise relations with customers throughout the network, manage the after-sales service and pass customer feed-back on to the entire organisation. Corporate Responsibility / Customers 380
Commitment to Health
In its in-flight magazine, Ronda Iberia, the company includes some practical advice on how to make the flight more comfortable and healthy. Exercises are described to prevent deep vein thrombosis, especially recommended for passengers with circulation problems on long haul flights. The Company also informs on this syndrome in a video played on all flights of over three hours. This advice can be consulted at: www.iberia.com/viajarconiberia/ All food products served in flight in the different catering services are subject to strict health and safety controls, in pursuance of prevailing laws and regulations. The company also offers different menus to suit the needs of all customers (gluten-free, vegetarian, etc.). In collaboration with CISS-Especial Directivos and Wolters Kluwer, Iberia runs courses to overcome fear of flying, with extremely high success rates: 96% of those participating in the seminars over the past ten years have conquered their fear. In these seminars, Iberia pilots inform participants about air safety and how aircraft work, while a group of psychologists teach them relaxation techniques.
Iberia allowed changes in tickets to/from Mexico for any customers wishing to postpone their trip or change their destination owing to the outbreak of swine flu in that country. The company made its price terms more flexible, allowing changes without any penalisation for tickets purchased prior to 26 April 2009 with planned date of travel up to 27 July. It also cooperated at all times with the Spanish Ministerio de Sanidad by providing information on the disease and giving advice to travellers on the precautions they should take on their trips to Mexico or other affected areas.
Dealing with passengers with special needs
Reduced Mobility Persons (RMP) receive special assistance free of charge from their arrival at the airport of departure to departure from the destination airport. All passengers with a disability or illness are accompanied to the aircraft and their wheelchair, or guide dog in the case of the blind, travels on board at no additional cost. In pursuance of the European Regulation EC 1107/06 and since 26 July 2008, AENA, as Airport Authority, is responsible for assisting Reduced Mobility Persons (RMP) at all Spanish airports. In turn, it delegates this service to the companies or joint ventures awarded the services at each airport, through competitive bidding. Iberia cooperates actively in the RMP service through its participation in the main joint ventures awarded the handling services at airports. Iberia Handling also provides this service to all the passengers of other airlines at the airports at which it operates as the sole Handling Agent. Corporate Responsibility / Customers 381
At the European airports to which Iberia flies where the EC regulation is also applicable, the corresponding airport authorities are also responsible for assisting RMP, while at other airports outside the European space, Iberia and its handling company perform the service directly. Iberia also provides RMP passengers at all airports in the network with documents containing essential information on their rights and obligations, in formats accessible to all kinds of disability. The contents of www.iberia.com are regularly updated following the WAI (Web Accessibility Initiative) guidelines.
In 2009, new functions have been included for customers on Iberia.com, in an endeavour to make the web site more accessible:
People with some kind of visual disability have been taken into account, making it possible for them to use the purchasing process. The steps for buying a ticket have been simplified: This is now done in 3 steps, instead of the 6 steps needed previously. The possibility has been created for large families to obtain a subsidy on-line. The possibility has been provided for anyone requiring assistance at the airport to indicate this need when booking their flight.
Similarly, any minors travelling alone with Iberia (UM, unaccompanied minors) are accompanied at all times and treated with special care. Iberia offers this service to any passengers aged between 5 and 17, inclusive, provided it has been expressly requested by their parents or guardians. Iberia takes all necessary measures to ensure that these UM are never left alone, from their handover by relatives or guardians to handover to the persons taking charge of them on arrival.
Passenger-geared innovation
Iberia has always been among the first to pass on to its customers any improvements offered by the new technologies for their convenience and to save time: electronic tickets; online check-in on Iberia.com; auto check-in machines at airports; one of the most modern fleets on the market and a Business Plus Class and VIP Lounges with the highest level of services. Corporate Responsibility / Customers 382
For example, in 2009 the company introduced the possibility of downloading boarding cards to customers’ mobiles or PDA and board with the mobile device at 8 network airports, including Madrid and Barcelona. For effective identification customers only have to show their mobile or PDA to the mobile boarding card reader with the image on the screen and wait a few seconds for a positive identification. Iberia is the first Spanish airline to offer customers this possibility.
4.2 Iberia Cargo customers
Iberia Cargo offers its customers capacity in the bellies of Iberia aircraft. With cutting-edge technology and using iberia-cargo.com as its e-commerce platform, it offers a modern, expeditious, efficient, secure service, guaranteeing the carriage of its customers’ goods. It www.iberia-cargo.com currently provides this service for around 100 companies. In 2009, Iberia continued leading the IATA e-FREIGHT project, the main aim of which is to eliminate most of the paper documents used in the handling of air cargo, including the freight contract or Air WayBill (AWB). This project, which eliminates the need to send the 13 paper documents of each order, thus making the processes more dynamic, enhancing speed and reliability and lowering costs, and affects all those involved in industry: hauliers, forwarding agents, ground service agents, shippers and customs authorities. Iberia and IATA have now embarked on a new phase of the project, as yet at the development stage, starting up the electronic cargo documentation system at five destinations: Amsterdam, Stockholm, Frankfurt, London and Madrid. The Canary Islands and USA are hoped to be included shortly.
4.3 Iberia Maintenance customers
Iberia Maintenance is the leading company in Spain in repair, high technology and modification of aircraft, and ninth in MRO worldwide. It serves the Iberia fleet and also more than 100 customers throughout the world: airlines on every continent, aircraft and engine www.iberiamaintenance.com manufacturers, logistic support and operational solutions for the Spanish Air Force, full maintenance services for other Spanish VIP aircraft and other types of military aircraft, among others. It is certified by national and international agencies, including the Spanish Civil Aviation Authority, European Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA). Most of the improvements and developments made in the maintenance area are pioneer innovations on a national scale, and in some cases even on an international scale, designed for the service provided for both own and third party aircraft. As mentioned in earlier chapters of this Report, one of the most important projects under way is the building, together with Consorci de la Zona Franca de Barcelona (CZFB), of a Hangar at El Prat Airport in Barcelona. This infrastructure will largely be used for the maintenance of third-party aircraft, with maintenance capacity for the largest aircraft, which will contribute to the development of the Barcelona hub on long-haul routes from El Prat airport.
4.4 Iberia Airport Services customers
Iberia Airport Services is the leading passenger and aircraft handling operator in Spain; it is present at almost all Spanish airports with more than 80 years’ experience. It has the largest mobile fleet in Spain, with more than 8,000 units of handling equipment and a headcount of http://handling.iberia.es 7,926 professionals. It is also the only Spanish company offering its customers a global service, providing services for 228 airlines, almost 74 million passengers and 380,000 aircraft. Corporate Responsibility / Customers 383
The most important, innovative project in 2009, as recognised by external institutions, was the consolidation of the stopover handling tool, GAUDÍ - Gestión de Aeropuertos Unificada Desarrollo Integral - [Integral Development Unified Airport Management], the main features of which are:
Automated task planning, definition of the required shifts, assignment of resources to those shifts and constant update and adjustment. Real-time assignment of tasks for employees to optimise productivity, using, among other variables, the physical distance from the location of one task for assignment of the next or, in the case of ramp handling, location by GPS of the closest vehicle. Monitoring of state of services and updating of records using portable devices.
In view of the complex operations of the handling business, the service provided using this tool is much more efficient, punctual, reliable and satisfactory for customers.
4.5 Guarantees for all our customers
Ethical advertising
Iberia is a member of the Commercial Communication Self-Regulation Association (Autocontrol). Therefore, assumes an ethical commitment to responsibly exercise the freedom of commercial communication and helps to strengthen advertising self-regulation as a means to ensure respect for the rights of consumers and competitors, according to the certificate issued by the Association for the company in 2009.
Safety
Iberia has extensive, proven experience in the safety of all its operations, both ground and in-flight. The company has assurance systems that regulate the operation and maintenance of aircraft in accordance with the EASA and FAA international standards. Iberia has certified its Operating Quality and Safety Management System under the IATA Operational Safety Audit (IOSA) standards. As such, it is subject to annual audits, which reveal the strength of the company’s controls. Corporate Responsibility / Customers 384
Iberia has a broad insurance programme, taking out policies with leading Spanish insurance companies and top-ranking reinsurance on international markets to ensure that insurance cover is in keeping with the best practices on the aviation market, in all cases going beyond mere compliance with the requirements stipulated in the Spanish Aviation Act and international agreements and conventions. Thanks to the work group set up in 2007 led by the Airport Authority and with the participation of the different company managements, in 2009 the safety indicators improved considerably in Iberia’s ground operations, particularly in the prevention of impacts to aircraft and custody of cargo, both baggage in the bellies of the aircraft and hazardous cargo.
Quality certificates
Most areas of the company have now been certified under the requirements established in UNE-EN ISO 9001:2008, which include specific quality indicators relating to the processes of the different activities, subject to regular internal control, as described in section 4.1 above.
Areas certified for Quality
Airports Cargo Procurement Infrastructure Maintenance & Engineering Flight operations In-flight Service Systems Customer Services / Claims
Iberia currently has 28 employees in different areas of the company qualified as internal auditors of certified management systems. 33 internal quality audits were made in 2009 to confirm and guarantee continuous improvement. Through the audits made during the year and permanent analysis, some 566 actions for improvement were pinpointed and monitored in the certified areas, with a view to improving internal and external processes and customer satisfaction. With regard to quality-related training, preparatory courses were given for making audits, measuring customer satisfaction and dealing efficiently with customer complaints and claims. Moreover, with a view to improving the qualifications of internal auditors and their contribution towards the maintenance, improvement and operation of the different Quality Management Systems in the company, in 2008 they all did the prestigious course European Expert in Quality Management, run by the Spanish Quality Association - AEC. Corporate Responsibility / Shareholders 385
5. SHAREHOLDERS
This section contains an overview of Iberia’s business performance in 2009 and a description of the management systems established by the company to generate confidence and add value for our shareholders in aspects relating to corporate responsibility. For detailed information on the economic aspects of the company or the Group, consult the Annual Management and Corporate Governance Reports issued together with this Responsibility Report, which can also be downloaded from http://grupo.iberia.es
5.1 Performance of the different Iberia businesses in 2009
Plan 2012
The Board of Directors of Iberia approved a new Strategic Plan, “Plan 2012” in October 2009 containing measures to cope with the economic recession, drop in revenues, reduction of traffic and economic losses, and with the negative evolution of the sector, as a result of which the contingency measures implemented turned out to be insufficient. This Plan, which aims to guarantee the viability of the company and restore profits, contains measures to generate revenues, savings and cost efficiency, improve the service and change the operating model on short and medium-haul routes. More information in the 2009 Annual Report.
Progress in the British Airways - Iberia merger:
On 12 November Iberia and British Airways signed a MoU (Memorandum of Understanding) for a merger between equals, which is expected to become final during 2010. The Boards of Directors consider the main benefits of the merger for their future shareholders to be, among others:
Enhanced strategic position in the world aviation sector:
Highly complementary network combining the strong presence of British Airways in North America, Asia-Pacific and Africa with Iberia’s leadership in Latin America. The Group will offer customers connections to 205 destinations and strengthen the oneworld alliance, in which both airlines participate. Larger size and capacity to compete with the leading airlines and participate in future consolidation processes within the sector.
Larger capacity to invest in new products and services and improve existing ones, and to cut costs. Large future growth potential, optimising the two hubs in Madrid and London.
More information in the 2009 Directors’ Report and at www.cnmv.es
Passenger and cargo air transport:
Despite the difficulties encountered in the market in 2009, the company has included a new destination, Zagreb, increased the frequency of its flights to Milan, Caracas, Lima, Buenos Aires, Bogotá, Havana and Quito and offered the destinations Sofia and Sidney through code-sharing agreements with Bulgaria Air and Qantas, respectively. Corporate Responsibility / Shareholders 386
Iberia and Latin America Iberia signed an agreement in 2009 with GOL, the second most important airline in Brazil, to gain access to the entire Brazilian market. Company, the company’s capacity in Brazil has been increased by 13 destinations, which are added to the flights operated directly to Sao Paulo and Río de Janeiro: Bello Horizonte, Brasilia, Curitiba, Florianópolis, Fortaleza, Foz do Iguazú, Goiânia, Manaus, Natal, Porto Alegre, Recife, Salvador and Vitoria. In the cargo business and with a view to increasing its presence in central and eastern Europe, in 2009 Iberia chose North Air Logistics as its general cargo sales and services agent for the Czech Republic, Croatia, Hungary, Poland, Slovakia, Romania, Greece, Denmark, Sweden, Norway and Finland. Under this agreement, North Air Logistics, a professional, prestigious organisation in the sector, will provide complete customer service and support for Iberia Cargo in these countries and its extensive office network will help Iberia to grow on those markets.
Maintenance, Repair and Overhaul (MRO):
As a result of the strategy of specialising in activities that create value added, adopted by the Iberia Maintenance business in recent years to attract new customers, it has achieved a significant growth, reflected in 2009 in the following commercial agreements and contracts:
Type of contract / agreement New Customers
Engine maintenance FedEx, Yakutia Airlines, Blue Dart Aviation Ltd., Xiamen Airlines Parts maintenance Finnair Technical Services, SR Technics Integral maintenance (aircraft, engines and parts) SAS, DHL Corporate Responsibility / Shareholders 387
Airport Services
The Iberia handling business continues taking measures to increase its competitiveness, secure customer loyalty and attract new opportunities for development. During 2009, Iberia Airport Services obtained several new ramp and passenger handling contracts with the companies and at the airports indicated in the following table:
5.2 Risk Management
Iberia takes account of any potential event that could jeopardise the achievement of its objectives. The company has developed a complete Risk Management System, through which all risks are identified, assessed and controlled systematically. Further information can be found in Section D of the Annual Corporate Governance Report. In accordance with its Corporate Responsibility Policy (see Chapter 1 of this Report), Iberia adopts a focus of anticipation to guarantee the sustainability of its actions, through integral management of the following risks, which form part of the company’s Risk Map: Corporate Responsibility / Shareholders 388
Reputational: risks deriving from the perception that the different stakeholders might have of the company’s actions in the performance of its business activities. Environmental: risks deriving from compliance with current environmental laws and any new regulations that may affect the company, such as the emissions trading regulations. Social: risks relating to aspects such as competitiveness of the different professional groups within the company, attracting and retaining talent and the occupational health of its employees.
Iberia also has several specific areas that deal with the management of sustainability risks, which have established different controls described elsewhere in this Report. The Audit and Compliance Committee of the Board of Directors is regularly informed on the Risk Map and the actions taken in respect of Corporate Responsibility. Iberia participates in the Spanish task force for standardisation of the ISO 31000 Guidelines on Risk Management, which has been published in December 2009.
5.3 Fraud prevention and anti-corruption measures
Iberia’s different internal control systems - budget control, management control and auditing - take risks of fraud into account and are set up to detect such risks, both internally and externally. Iberia has been developing procedures to prevent fraud in carriage documents since 1991 and pays special attention nowadays to credit card transactions. The company has a Security Committee and a Fraud Prevention Committee, which coordinate prevention measures and study any cases that may arise, of fraud or other possible unethical or criminal conduct. The annual internal audit programme contemplates analyses of all business units and makes random checks of the company’s territorial organisation, taking these risks into consideration during the audits. Iberia also participates in the Large Cap Tax Forum, created in 2009 for the principal Spanish companies and the Spanish Ministerio de Economía y Hacienda to get together and collaborate, with a view to agreeing on a code of good practice for tax treatment of complex operations in order to avoid tax conflicts.
5.4 Good Governance
The structure and functioning of Iberia’s corporate bodies are based on the latest rules and recommendations approved in respect of Corporate Governance. As a listed company, Iberia takes the rules and recommendations of the Unified Good Governance Code into account in its corporate governance practices and reports. Corporate Responsibility / Shareholders 389
Iberia establishes several mechanisms to guarantee ethical business conduct and good governance of the company, including, among others:
Regulations of the Board. Regulations of the General Meeting. Bylaws Internal Regulations of the Audit and Compliance Committee Code of Conduct in respect of matters relating to security markets Internal Audit Regulations Statute for Company Executives Collective Agreements and Works Councils Performance assessments Suggestion boxes in Intranet / Extranet (IBPróxima), with the possibility of sending suggestions anonymously. Code of Ethics for application of the Global Compact in Iberia, published for the first time in 2008-09.
The detailed information of the Annual Corporate Governance Report may be consulted on the company’s web site http://grupo.iberia.es/.
5.5 Innovation management
Therefore, any project geared at improving processes, resource-saving and the quality of services and products developed is, for Iberia, an innovative project. Por tanto, cualquier proyecto orientado a la mejora de los procesos, ahorro de recursos y calidad de los servicios y productos desarrollados, es, para Iberia, un proyecto innovador. The complex nature of air transport makes it essential to consider innovation projects from a multi-disciplinary point of view, involving different areas of the company in each project and, consequently, strengthening cooperation between working teams and gearing towards the end customer.
Every year, Iberia implements dozens of projects of this nature and many of them are recognised as innovative by means of independent assessments or certifications by different Spanish and international official institutions. Corporate Responsibility / Shareholders 390
With regard to corporate responsibility, innovation in Iberia contributes towards:
Generating satisfaction and value added for our stakeholders. Sustainable development through efficient use of resources: many projects aim to save water, paper and fuel, among other aspects. Obtaining competitive edge in the performance of our businesses.
The Cotec Foundation, in its report “Business R+D Assessment Cases” published in 2009, in which it analysed ten cases of companies of very different sectors and sizes that owed their success to an innovation project, selected as an example an innovation project in which Iberia managed to cut costs, enhance employee safety and minimise environmental impact, namely the Automated Engine Cleaning Line improvement project, in which a process was created to provide this service also for other airlines.
5.6 Brand management
The company’s investments in communication, marketing and sponsorship are in keeping with the strategy marked out by the company and their profitability is analysed regularly, according to pre-established control procedures. Iberia constantly monitors the best practices in branding on the market to incorporate all those that conform to the company’s Strategic Plan in its decision-making processes. The brand is diversified to distinguish the different business units – Iberia Maintenance, Iberia Airport Services and Iberia Cargo -, the sales and services channels - Iberia.com, Serviberia - and the frequent flyer programme – Iberia Plus -.
In 2009 the handling business changed its brand name from Iberia Handling to IBERIA AIRPORT SERVICES to meet the following goals:
Better reflect the activity performed; Make it easier for potential customers to identify the brand; Put across the idea of modernity, service vocation and commitment to adapt to change.
The logo and brand name were introduced gradually in several phases, requesting and thanking employees for their collaboration. In 1991, Iberia was the first airline in Europe to introduce an international frequent flyer programme to reward customers’ confidence in the company, Iberia Plus, which currently has almost 4 million members in 230 countries worldwide and has over 90 associated companies. online shops, property groups and health and safety firms, among others. Through this points programme, the Iberia brand has spread beyond the aviation sector and collaborates with other sectors, especially those related with leisure and tourism; and has crossed the borders of the markets served by the company, reaching the entire world through the oneworld alliance. Corporate Responsibility / Shareholders 391
One of the most important incorporations in the Iberia Plus programme in 2009 was that of the new Vueling, following its merger with Clickair. Vueling is one of the brands with the best perception on the Spanish market, according to the poll Coolest & Gaps conducted by the strategic marketing consultant Allegro234, which valued what it puts across to its customers and the "brand experience", that is, the associated services, customer service, unity of capacity and value for money.
According to an IdeaWorks study published by The Economist, comparing the frequent flyer programmes of ten of the largest European and American airlines, Iberia Plus is the programme that gives its customers the best rewards. Iberia customers can choose easier than others the free flight they want to use their points: in 83% of cases the customer obtains a ticket on the flight and date desired, the highest percentage in the ranking and almost 20 percentage points more than its closest rival.
Iberia.com is the Spanish web site with the largest volume of sales. It has 44 different versions for 44 different countries in Africa, America, Europe and the Middle East and is translated into 7 languages. According to Market Monitor Travel, a tool designed by Havas Digital, Iberia.com was one of the most important brands in the ranking of on-line travel firms in Spain in 2009. The indexes are calculated on the basis of the combination of site audience data, brand valuation, experience and positioning in search engines. The oneworld alliance and the airlines belonging to it base their brand strategy on a global offer to customers, with special prices for travelling around the world.
Iberia and Latin America
oneworld is the global leading airline alliance in Latin America: apart from having LAN and Mexicana among its partners, Iberia heads the offer of flights from Europe and American Airlines is leader in traffic with the United States.
As regards brand assessment, Iberia considers that external assessment offers greater guarantees of unbiased valuation:
According to the report Top 50 Value of Spanish Brands prepared by the consultants Brand Finance y Coleman CBX and published in March 2009, Iberia ranks 26th with a brand value of 687 million USD, first in the Tourism and Travel sector with an acceptable potential and risk rating. According to the study “The best Spanish brands 2009”, published by Interbrand in November 2009, the Iberia is 16th in the ranking with a value of €324 million.
The valuation differences are due to the use of different measuring methods. Since 2003, Iberia has been an active member of the Association of Well-Known Spanish Brands, AMRE (www.marcasrenombradas.com), which has more than 70 well-known leading Spanish brands from different sectors, firmly established on an international scale with a vocation of permanence on foreign markets, which have joined forces to work on the development, defence and promotion of Spanish brands. With the help of AMRE, the American consultant Brand Keys has presented the index CLEI, the first Index of Loyalty and Commitment to Spanish brands, based on consumers’ opinions, in which Iberia rates highly in the airline sector. Corporate Responsibility / Shareholders 392
In 2009, Iberia and the Spanish Ministerio de Industria, Turismo y Comercio reached an agreement to jointly promote the image of Spain overseas, through a joint advertising campaign and participation by Iberia in trade fairs, professional conferences and congresses organised by Turespaña. The airline will provide promotional air transport to Spain for international journalists, tourist operators and travel agents. Iberia also regularly promotes Spanish food and wines with Designation of Origin (DO) or Registered Geographical Indication (IGP) in-flight and in its VIP lounges. In 2009 it promoted Cantabrian food and drink, in collaboration with the Grupo Sodercan, the company promoting regional development of Cantabria; and Andalusian organic olive oil, produced according to principles of ecological farming and using the best olives of small producers.
Iberia and Latin America According to the KAR (Key Audience Research) study made in 2009, which assesses the economic situation and measures the corporate reputation and social responsibility of Spanish companies and their stakeholder engagement through Ipsos polls conducted on politicians, analysts, academicians, business leaders and journalists, Iberia was elected one of the 5 companies with greatest sensitivity towards Latin America, together with Telefónica, Santander, BBVA and Repsol. In fact, Iberia operates over 100 flights a week to 17 cities in Latin America, making it the airline offering the largest number of connections from Europe.
Through its Cargo business, Iberia is a member of the Spanish Exporters and Investors Club, which defends the interests of Spanish companies in the challenge of making their business international. www.clubexportadores.org Corporate Responsibility / Suppliers 393
6. SUPPLIERS
Iberia considers its suppliers strategic stakeholders in its value chain, to obtain products and services that meet the quality, safety and environmental standards defined by the company. Moreover, Iberia upholds its commitment to society to demand responsible practices of its suppliers. During 2009, Iberia, together with Caja Navarra, Carrefour, Iberdrola, Pascual, Repsol and Telefónica, continued collaborating in the workshop analysing the role of the purchasing department in the development and consolidation of Corporate Social Responsibility (CSR) and extend the responsible policies to their suppliers. The initiative of extending CSR to suppliers was started up by the Spanish Association of Procurement Managers (AERCE), which umbrellas more than 2,000 Spanish companies. This work group is convinced that CSR will only be possible if the culture of social responsibility is publicised as a value generator in the supply chain. 75% of the expenditure of large enterprises is managed by the purchasing department, hence it is largely up to this department to transmit social responsibility to their suppliers, which are generally SMEs. This work group is stressing both the benefit to the reputation of large enterprises as they reduce risks through a responsible purchasing management, and that obtained by SMEs as they establish bonds of trust with large enterprises that are their customers.
6.1 Procurement Management System
Iberia procurement management is geared towards achieving the company’s goals, regulated by internal rules and procedures and guided by the following general principles:
Internal customer satisfaction: Procurement management aims to achieve the best procurement alternative for the internal customer, optimising the ratio of service quality to total cost, guided by economic streamlining and transparent management. The company makes a homogenous, systematic use of purchase tracking and information systems to assess fulfilment of this goal. Compliance with the law: Iberia only approves as potential suppliers those who comply with prevailing laws, regulations and standards on quality, safety and hygiene, labour, environment, tax, etc. Free competition: Competition between the different suppliers is encouraged, accessing the data bases of potential, existing or former suppliers of Iberia, its partners and commercial allies and the different virtual market places on which Iberia operates. Conditions cannot be set based on brands or specific models. Transparency and Confidentiality: A minimum of three bids must be obtained for any purchase/contracting. Iberia has electronic negotiation tools to guarantee these principles. All internal information on suppliers and contracts is kept strictly confidential. Corporate Responsibility / Suppliers 394
Caution: The company takes the necessary measures of care, diligence and protection whenever there is any kind of relationship or bond between an employee of the company and the entity or individual bidding for a contract, especially as regards negotiation and choice of the supplier.
The Quality Management System of the Iberia Procurement Department has been certified under the ISO 9001:2008, the first in Spain to incorporate internal customer satisfaction in its procedures. Its Quality System includes the procedure for handling claims from internal customers following incidents in the service provided. To centralise the monitoring of suppliers and expedite the solving of incidents, a Procurement Incidents Portal was set up in 2008 to channel claims from customers. From IBPróxima an internal user can rapidly and simply report any incidents that occur during fulfilment of a contract, supply of an order or performance of a service.
6.2 Responsible procurement
Iberia has different types of suppliers and risks throughout its different business areas which must be treated differently to achieve the quality of service demanded by the customer. The selection of suppliers, especially critical suppliers, is extremely important when seeking the best results. By definition, critical suppliers are those bearing an influence on the performance and results of the principal process and those whose product or service affects the quality perceived by customers. The Iberia Procurement Management keeps an up-to-date exhaustive data base of all its suppliers. On equal conditions, it always favours suppliers that have obtained certification for the protection of human rights, the environment and quality. Iberia also encourages all its suppliers to respect the codes of conduct and good environmental practices. Thus, when tendering contracts, it includes in both the bidding terms and conditions and the contract proper, clauses concerning:
Confidentiality Industrial property Data protection Labour commitment Environmental commitment Global compact In addition, suppliers awarded contracts for security and surveillance services undertake to impose limits on the use of force in their activities.
Compliance with these clauses is regularly assessed according to the monitoring information, the risk exposure to the company’s reputation and how critical the contract is for the value chain. Corporate Responsibility / Suppliers 395
6.3 Supplier payment tools
As established in its the control procedures, Iberia has established maximum times for the payment of invoices. Iberia’s healthy financial position guarantees payment for the products and services contracted and provided to Iberia’s satisfaction. In 2009, Iberia has continued implementing its e-invoicing project, the main aim of which is to speed up the invoicing processes of its suppliers and set up another communication channel with them. This project also achieves major savings in administrative material: paper, envelopes, etc., with the consequent benefit for the environment, and savings in management time spent on improving processes, for both Iberia and its suppliers.
Specific relationships in the air transport sector
As commonly occurs within the aviation industry, Iberia has a fluent relationship with the manufacturers of aircraft, engines and parts for its fleet and that of third parties, through its maintenance and engineering business. Iberia reports to the OEM - Original Equipment Manufacturer - any incident or irregularity occurring during maintenance or flight activities, which is studied to define all aviation safety-related aspects that might be recommended for the entire industry. Iberia also analyses the life cycle and performance of its fleet with the manufacturers. In the airport services business, Iberia has a very close relationship with the airport authorities at the airports at which it operates as handling agent, especially with AENA, since Iberia is present in almost all Spanish airports. The complex nature of ground handling services requires permanent coordination between Iberia and AENA to achieve the satisfaction of the users of air transport. Corporate Responsibility / Employees 396
7. EMPLOYEES
In accordance with its Corporate Responsibility policy, Iberia incorporates and contemplates respect for human rights in its operations, based on the standards established in the Universal Declaration on Human Rights, the eight Core Conventions of the International Labour Organization and the United Nations Global Compact. Iberia seeks to achieve the maximum development of its employees and to generate the necessary climate of confidence to face the changing needs to which the company is exposed and favour the integration and relationship of individuals working in it.
7.1 Workforce and labour relations
The composition of the Iberia workforce broken down by countries, sex, labour category, business and type of contract can be consulted in the Annexes to this Report and in the Annual Accounts of Iberia L.A.E. The company has employees in practically all the countries to which its commercial network extends. The distribution of employees by countries is shown in the following map:
Union representation and participation
Iberia has two committees, the Ground Staff Inter-Workplace Committee and the Flight Committee, which maintain continuous relations with the unions. It also has a Health and Safety Inter-Workplace Mixed Committee and a Flight Health and Safety Committee, which deal with issues concerning occupational hazard prevention. Iberia also has a Social and Economic Committee, involving trade unions. The ground staff union representatives sit on 21 Workplace Committees (works councils) nationwide, and a further 15 workplaces have workers’ delegates. Corporate Responsibility / Employees 397
Internationally, Iberia has workers’ representatives in 40% of the countries in which it has employees and there are collective agreements in: Argentina, Austria, Belgium, Brazil, Chile, France, Germany, Greece, Israel, Ireland, Italy, Mexico, Netherlands, Portugal, Sweden, United Kingdom, Uruguay and Venezuela; and union representatives in Peru (see Annexes).
Collective Agreements
The VII Collective Agreement for Pilots was signed on 20 April 2009, effective from 1 January 2005 to 31 December 2009. In accordance with the established times, Iberia gave express notice of termination to the Union Section and the Spanish Labour Authorities on 28 October 2009. The Bargaining Committee for the VIII Collective Agreement was set up on 24 November 2009 and has held regular meetings from then and throughout December. The Bargaining Committees for negotiation of the XVI Collective Agreement for Flight Attendants and the XIX Collective Agreement for Ground Staff, were set up towards the end of 2008, with regular meetings throughout 2009. During the months of October and November 2009 the unions TCP, CTA-Vuelo and SITCPLA went on strike for 4 days. After calling a further 8 days of strikes for November and December, an agreement was reached with both unions in which, among others pacts, they undertook to keep the peace during the negotiations. This agreement was ratified by majority vote in the Bargaining Committee.
Employment
Iberia has a single online access point – IberiaEmpleo - for handling job offers, made available so that anyone interested in working for the company can send in his/her CV and be a candidate for filling possible vacancies:
https://portal.iberia.es/iberiaEmpleo/ Corporate Responsibility / Employees 398
The company continues applying the two Redundancy Plans 72/01 and 35/05, which were extended by the Spanish labour authorities in 2007 up to December 2010 and December 2014, respectively. Redundancy Plan 72/01 is voluntary for employees and has been widely accepted since its approval. During 2009 a total of 342 ground staff took early retirement, 194 of whom retired under Plan 2012. The options of Deferred Reassignment, “Novations” to Stable Employment and Voluntary Redundancy were also available for both ground staff and flight assistants, 16 early retirements being granted in the latter group. Also within the aforesaid Redundancy Plan, on 30 April 2009 the Spanish labour authorities passed a Complementary Decision authorising Iberia to extend the period of voluntary acceptance and application of Redundancy Plan to 31 December 2013 for pilots over 60, on the terms stipulated in the Social Plan agreed on 20 April 2009. This Redundancy Plan was applied in 2009 to 234 pilots. The maximum number of redundancies was set at 1,074 under Redundancy Plan 35/05, established owing to the loss of business at certain network airports after the awards of handling licences in 2006. During 2009 the company continued applying the measures contemplated in the Handling Sector Collective Agreement, which regulates subrogation to the companies that obtained the new licences. The company has also signed joint venture agreements for Barcelona, Lanzarote and Fuerteventura airports. This Handling Sector Collective Agreement was denounced by the unions CCOO, UGT and USO by letter dated 25 May 2009, and the Negotiating Committee of the Second Handling Sector Collective Agreement will be formally constituted in 2010.
7.2 Satisfaction, internal communication and motivation
Employee satisfaction is mainly channelled through the suggestion boxes available in IBPróxima, through which employees can express any observation, remark or concern, even anonymously if they so wish. These suggestions are mostly assessed and answered in less than 24 hours, and those considered important are published monthly, together with the replies offered by the responsible management departments. The company makes regular polls through IBPróxima to find out its employees’ opinions on matters of general interest, many of them related with the meeting of their expectations in connection with the services offered. Employees are informed on Iberia’s goals and results – strategic plan, stock exchange performance, punctuality details, significant milestones, etc. – permanently through IBPróxima, daily on the company’s notice boards and monthly through the magazine Iberiavión. Corporate Responsibility / Employees 399
A new design of the Press Summary, one of the contents most consulted by employees every day, and a new digitalisation service for articles catalogued by the Documentation Centre were launched in 2009, with major savings in material by eliminating photocopies, with the consequent benefits for the environment. A theme portal called IB-BA Merger has also been created to provide all employees with information on the merger in progress as and when it is generated.
Iberia has established a staff recognition system for all its employees, based on individual or group suggestions and recognition of extraordinary actions. To stimulate creativity and individual and group efforts and as a basic factor in continuous improvement, reward is given for the profitability obtained as a result of a proposal for improvement. Recognition ranges from being congratulated by the Acknowledgements Committee to economic prizes, which totalled 68,636 € in 2009, with 49 employees rewarded for 33 suggestions. The company uses several forms of incentive through different variable pay items added to the salary, regulated by collective agreement and rewarding employee productivity: bonuses for attendance, shift work, duties, etc. The levels of progression and promotion are linked to the Performance Assessment, made regularly. The company has a policy of filling vacancies in senior positions (positions of responsibility) through internal promotion. Although the candidates are often previously identified and prepared through the Professional Development Plans described in section 7.3, the company regularly calls for internal applications to select employees with profiles best suited to the positions to be filled.
Integral Customer Service Plan (PISAC)
Iberia designed and developed the Plan following talks with all the stakeholders involved, especially employees, through the following tools:
Opinion poll: in a poll conducted at the beginning of the Plan, more than 60% of the company employees considered the PISAC necessary for Iberia, and over half of those employees considered it essential. A total of 4,398 replies were received in the on-line poll. Communication: all employees were openly requested to say what they thought ought to be remedied or improved in the service, since there is no-one better qualified to submit ideas than those who are constantly attending customers. Theme Portal in IBPróxima: with all the information on the Plan and the initiatives sent in by employees through a specific suggestion box, and the replies sent to those employees by the appropriate management departments after studying the feasibility of the proposals. Some of the initiatives were put into practice immediately, showing the effectiveness of the participation. Meetings with the Chairman: Antonio Vázquez had several meetings during 2009 with employees who had submitted suggestions to hear their proposals first hand and exchange opinions on the future of the company, in informal chats highly valued by those attending them. Corporate Responsibility / Employees 400
Prizes for the best suggestions, among those received between April 2009 and March 2010.
7.3 Training and Development
Iberia’s training model is based on the need for specific qualifications for the sector that are not readily available on the market and for which there are often no specific training centres. In the company’s opinion, training is the best tool for giving people the competence (knowledge, skills and attitudes) they need to do their job better, increase their productivity and capacity to respond to the challenges arising in the business. The contents of training are geared not only to developing skills associated with a particular job, but also to fostering future professional development and alignment with the company’s strategic objectives, placing special emphasis on training for the following:
Customer service Incorporation of new technologies Development of managerial skills Health and safety Commitment to quality and excellence in management Protection of the environment and human rights
In 2009 Iberia continued developing Campus Iberia, a platform for staff training, offering new generation multimedia courses to acquire essential knowledge of the business. This e-learning platform is easy to use for both students and teachers and guarantees a more accessible training, together with active communication through the different tools such as forums or e-mails. Corporate Responsibility / Employees 401
These on-line courses offer numerous advantages, especially flexibility in time and location and the ample accessibility for employees, resulting in optimisation of the training resources.
Ejemplo de curso on-line
Integration of education and business
Iberia has agreements with several Spanish and international universities and training institutions, offering to collaborate with the government and academic institutions to implement the educational system, both by adapting vocational training modules specifically for the air-traffic sector and by offering undergraduates, graduates and vocational training students an opportunity to acquire work experience. During 2009, these practices have been offered to nearly 500 students. The main objective of the Graduate Work Experience Programme is to adjust incorporations into the management and engineers group to the demand of different areas of the company according to the Strategic Plan. It also helps to detect graduates with potential, candidates for Qualified Staff Development Plans. The Graduate Work Experience Program was started up in 1996 and, so far, almost 60% of people who make up the managers and engineers group, have joined it through this Program, both by internal promotion (contract “novations”) and from outside, through postgraduate practices. Iberia also facilitates academic training for employees who are studying for official qualifications, granting Individual Training Permission to enable them to attend the corresponding commitments, releasing them from work so that they can study or go to exams. In 2009 Iberia participated in the UE Converge survey, which was presented jointly in Madrid by the Chamber of Commerce and the University-Business Foundation. This study analyses the specific knowledge associated with university qualifications to identify those that are more important for business and those with the greatest shortcomings. Corporate Responsibility / Employees 402
Iberia and Latin America In 2009 Iberia signed a collaboration agreement with Anáhuac University in North Mexico whereby the Spanish company offers its students and teaching staff preferential rates to fly to Spain and the principal destinations in Europe. As from 2010, when it celebrates the 60th anniversary of its flights to Mexico, Iberia will also award two grants a year for students of Business Management and Administration and Tourist Administration.
Attraction and retaining of talent
Iberia is constantly talent-spotting, both internally and externally, considering talent to be one of the critical factors for guaranteeing the company’s competitiveness. The company has established different selection protocols and competence profiles to detect the professionals with the greatest potential in the company. Once spotted, those professionals receive support through Personal Training Programmes, Continuous Assessment and Vocational Development and Succession Plans, through which talent is channelled towards the required field of specialisation or management, in the latter case within specialised leadership development programmes designed to guarantee a smooth take-over of all key management and executive positions at all times, having professionals capable of applying their talent to the circumstances required from time to time for the company’s business. During 2009 the following specific vocational development plans were carried out:
Development Programme for Unit Managers of the Maintenance and Engineering department: This development programme was begun on 21 April with the aim of consolidating the managerial skills and competence of the Maintenance business unit managers, as transmitters of confidence and values to their teams, so as to meet the challenges and take up the opportunities of the aircraft maintenance industry and make sure Iberia is competitive. This programme includes tools for assessing own competence, different training modules and spaces for reflecting on the duties and responsibilities of a Unit Manager from all points of view, including negotiating techniques, management, management in times of crisis, organisation and customer service quality. Human Factor Training Plan at Airports and Cargo: Investigations into air accidents have shown that 3 of every 4 accidents are due to human error. Consequently, within its Integral Safety Management System, Iberia has developed this Training Plan to develop abilities and use available resources to improve safety. On 3 February, psychologists specialising in Human Factors of Operations Management began the training of internal facilitators from different divisions of the company, who are then responsible for subsequent training of all the staff working on the air side. This continues, therefore, the development of a corporate culture promoting safety among all employees involved in the operation: crew, maintenance, handling, cargo, etc. Within the Annual In-Flight Management Training Plan, the 2009 Plan developed special modules to enhance service attitudes, in line with the PISAC. In the specific case of Chief Flight Attendants, the Plan contemplated a vast increase in communication. Corporate Responsibility / Employees 403
XV Air Transport Course
The Air Transport Course is one of the best examples of the company’s commitment to the development of human resources and management of the knowledge of its senior officers. This Course, which is now approaching its XVI edition, consists of a training programme lasting several months, in which management and experts in different fields share their know-how with persons considered to have a high potential in all areas of the company. The programme of each edition is also adapted to current trends of the industry and the challenges that the company has to meet from time to time.
As a result, Iberia has the best professionals in the sector, by tradition and vocation, with internationally recognised levels of qualification and specialisation. As proof of this, the following recognitions were made during 2009:
José Manuel Ruiz, Navigation and Route Manager, was elected member of the European Coordination Group of IATA. This group, consisting of ten experts from different airlines, counsels the Operations Committee and other management bodies of IATA to establish the needs and priorities in technical and operating issues, such as safety, airport infrastructures, navigation aids, traffic services and procedures, etc. Cora Zapico, lawyer from the Legal Department, was honoured as Best European Company lawyer in the competition category within the awards given by ILO / ACC European Counsel Awards 2009. These awards are very prestigious because they are the only ones able to identify the top lawyers in the world inside the legal departments of companies or their associates. Ricardo Génova, Operations Manager, was appointed member of the Performance Review Commission of EUROCONTROL, responsible for counselling the governing bodies of this European organisation on safety of air navigation. The purpose of this Commission is to establish independent, transparent and firm objectives to guarantee an efficient European air traffic management system, promote joint responsibilities and issue guidelines for State governments on economic regulation. The members are elected from among the nominations made by the member States of EUROCONTROL on the grounds of their capacity, competence, experience and professional reputation. Enrique Dupuy, Chief Finance Officer, was elected in the second edition of the study made by KPMG and the magazine Actualidad Económica, in which almost 2,000 companies participated, as one of the 100 chief finance officers who acted according to the best practices, best adapted to international trends and had a strategic vision like that of their international counterparts.
Iberia also gives training to third parties in the airport services, cargo, operations, in-flight services and commercial areas, especially to companies with which it has service contracts. One example is the annual training received by chief flight attendants and cabin crew of Group 45 of the Air Force, who accompany the Spanish Royal Family, President of the Spanish Government and senior authorities when they fly in official aircraft of the State of Spain, given at the Iberia Flight Attendants Training Centre, with both theoretical and practical training in safety and rescue, in-flight services and human factors. Corporate Responsibility / Employees 404
7.4 Employee Services: IBPersonas
IBPersonas is a personal management tool through which employees have permanent access to an ever-growing quantity of administrative and management information, on a self-service basis. It is divided into small channels, including especially those of training and development – management of employee training and access to CAMPUS Iberia –, employment - access to information on job vacancies, to be filled internally and/or externally -, employee self-service – performance assessment, wages & salaries, donations to charity causes deducted directly from salary, etc.–, mIBillete.free – self-issuing of tickets for employees –, occupational hazard prevention – access to documents on hazard prevention, participation and consultation, FAQ’s, etc. –, information – calendar of working days and public holidays, collective agreements, etc. – and management services for senior staff.
En el año 2009 se han producido las siguientes novedades en IBPersonas:
ISO 27001 certificate for information security Self-issuing of ZED tickets with other airlines, service called myIDTravel Self-issuing of tickets for children under 2, on mIBillete.free. Automated requests for transfers.
7.5 Ethics and Codes of Conduct
Iberia has a Code of Ethics for application of the Global Compact, published in the Annexes to this Report, designed as a direct, simple document containing a set of good practices. It lays down the bases for ethical, responsible conduct by Iberia employees in the performance of their work. The Code has been drawn up with three essential goals:
Adapt commitment to the Global Compact to the culture and values of the company, highlighting the most important conduct in Iberia so ensure that the principles are met. Have a general code of ethics that supplements the other codes of conduct of the company. Inform all employees on the Global Compact. Corporate Responsibility / Employees 405
The following campaigns were run during 2009:
“IN-OUT” Campaign, on personal image and uniform, since they affect customers’ perception of the employees dealing with the public and, therefore, of Iberia.
“Why don’t you tell them?” Campaign, on new in-flight messages, within the measures introduced by the PISAC so that customers perceive that they have chosen the best professionals.
“INFORMATION SECURITY is also YOUR business” Campaign, to make employees aware of their responsibility for protecting information, following the rules laid down by the company, with a number of general guidelines, by responding to a number of FAQ.
The company also publishes in its internal magazine Iberiavión each month some of the letters of complaint or congratulations from our customers, to give examples of errors and good conduct in the service and strengthen the commitment to quality customer service. All these innovations are supplementary to the codes of conduct and recommendations that already existed in the company, such as Disciplinary Provisions of Collective Agreements, Internal Code of Conduct in respect of matters relating to security markets or the Style Guide for customer service. Corporate Responsibility / Employees 406
7.6 Equality opportunity and diversity
Salaries in Iberia are established according to rank, seniority and position, with no distinction on grounds of sex, race or any other discrimination. In pursuance of Organic Law 3/2007, the Equality Plans are being negotiated with the different union representatives within the collective bargaining of the three Collective Agreements of the Company: Ground Staff, Flight Attendants and Pilots. The total percentage of women in the company at 31 December 2009 was 38%, 0.3 percentage points down on 2008.
AGE PYRAMID BY SEX
At the end of 2009, 418 persons held senior positions in the company, 128 of whom were women, 30.2% of the total. As regards diversity, the company has a policy of hiring local personnel, such that, apart from a few positions within the structure of some Commercial Offices abroad, which are held by people sent from Spain, 861 employees of the company are nationals of the countries in which Iberia operates as a multinational, of which 52% are women.
7.7 Work and family reconciliation policies
Reduced working hours for legal custody have been applied within the company to promote childbirth and protect maternity, paternity and care of the elderly, which benefits were taken up in 2009 by a total of 1,923 employees, 34.4% more than in 2008. The company takes account of the risks that employee’s work may entail for pregnancy and breastfeeding, especially among the flight groups, permitting different possibilities for reducing working hours, temporary suspensions of contract and the processing of benefits, all regulated by collective agreement. The latest uniform of the company has taken into account all the features of its employees, with a specific garment for pregnant employees. Corporate Responsibility / Employees 407
7.8 Health and safety at work
Iberia has its own Prevention Service with Senior Occupational Hazard Prevention Officers covering the four disciplines of prevention: Safety at Work, Industrial Hygiene, Ergonomics and Psychosociology and Industrial Health. The Maintenance & Engineering and Airports managements have established the figure of the Occupational Hazard Prevention Coordinator in their organisations, to promote and monitor the practical implementation of Prevention in their respective areas of competence. These Coordinators have continuous, close contact with the Prevention Service. In Iberia there are 21 Health and Safety Committees, with 83 Prevention Delegates distributed among the different workplaces, and a further 16 Delegates in workplaces which, because of their size, do not have a Works Council, covering 100% of the employees. There is also an Inter-Workplace Health and Safety Committee, with 6 Prevention Delegates. IBPersonas has a specific channel for occupational hazard prevention, containing necessary and useful information for all employees:
Rule SH-205 establishes how to proceed in cases of workers who, due to permanent or temporary personal circumstances, are especially sensitive to working conditions. Iberia participates in the public vaccination programmes established by the Health Authorities, including the annual flu jab campaign.
Recording and notification of occupational accidents
The entire process concerning occupational accidents is conducted in accordance with rule SH-400, which specifies the participation of each agent (management, affected employees, prevention delegates, prevention service, personnel units, among others), the documents to be completed and how they are to be kept. The Prevention Service has a computerised system for global management, connected to the company’s data bases, to which the different parties involved have access according to their authorisation level, in turn complying with the applicable data protection legislation. The lowering of the accident rate was consolidated in 2008 in all areas of the company, 9.7% down on 2008. The seriousness of accidents at work was also reduced by 8.8% on the previous year. These trends show that the measures taken in respect of prevention are adequate, encouraging the company to continue along the lines defined in the Prevention Plan. Corporate Responsibility / Employees 408
Principal occupational hazard prevention actions in 2009
The intense preventive work was further improved during the year with the following new actions:
Swine flu prevention campaign: As soon as the first news reached Spain of the outbreak of swine flu in Mexico, Iberia began to issue operating information on actions to be taken by ground staff and flight crews in connection with the disease and set up a specific portal in IBPróxima indicating the procedures and actions to be taken during stations and businesses. Iberia joined in the information campaign of the Spanish Ministerio de Sanidad, providing information through all channels of communication for its employees and customers to ensure that as many people as possible and their relatives could have as much information as they needed to be familiar with and prevent this flu. At the same time, each area of company management drew up a business continuity plan, establishing procedures to guarantee the company’s activities at all times were absenteeism caused by the flu to reach critical levels for normal operation. Skeletal muscle disorder prevention campaign: Iberia has continued with this awareness campaign, begun in 2008, to prevent these injuries, which are behind a large part of absences for sick leave within the company.
The Prevention Service set itself the target of ensuring that all employees had sufficient information to prevent this type of disorder. In 2009, the company has tackled the causes of these disorders and factors affecting their appearance, in particular:
handling of cargo and heavy loads positions when working repetitive movements straining Corporate Responsibility / Employees 409
It has stressed that if employees are aware of the risks they can be prevented by changing habits and the way in which certain daily tasks are carried out, both at work and in the personal and/or domestic environment. As in any airline, the most serious skeletal muscle disorders are produced during baggage loading and unloading operations. Iberia is on an Ad Hoc Committee together with the Spanish Ministerio de Trabajo y Asuntos Sociales, AENA and the unions CC.OO and UGT, which is taking measures to provide the loading and unloading bays with mechanical elements to reduce risk exposure in manual handling 4th review of Rule SH-203, Coordination of Business Activities, with all the documents that have to be delivered to companies within the framework of Coordination of Business Activities. New specific procedure PPRL 23 for assessing and treating psychosocial factors and review of procedure PPRL-13 for integration of occupational hazard prevention in the acquisition and commissioning of equipment and installations. Updating of prevention Technical Specifications, including:
Recommendations of minimum distances between office elements for users in wheelchairs. Recommendations for employees during pregnancy, recent childbirth and breast-feeding. Protection of employees during pregnancy, recent childbirth and breast-feeding.
7.9 Welfare benefits
The welfare benefits of the company include:
Welfare benefit Principal features
The funds are used to meet social needs, such as aids for education, aids for disabled and chronically ill children, welfare loans, expenses incurred through sickness, among others. This fund is jointly financed in equal Solidarity Fund proportions by the company and employees, except in the case of cabin crew, who contribute 0.40% of their basic wage and the company contributes a fixed sum. Ground and Flight Staff 50% financed by the company and the employee. This fund covers disability and retirement benefits. In the case Welfare Funds of flight crew, it also covers long-term temporary disability and death benefits. Group Life This assurance covers death and permanent disability. In the case of flight crew, it also covers the contingency of Assurance Policy permanent loss of licence. It is 60% financed by the company and 40% by the employee. Loans may be granted each year for up to 4% of the ground staff and flight attendants on the payroll at 31 Housing loans December of the preceding year. Medical cover Iberia takes and manages all activities and actions required for the recovery of workers who suffer accidents. Redeployment The company redeploys any employees whose capacity is reduced by illness or age to jobs more suited to their guarantee limitations. There is also a commitment to redeploy to ground staff any flight crew who lose their flying licence. Corporate Responsibility / Employees 410
The company and each employee make monthly contributions (50% each) through their salary to the pension scheme, handled by Mutualidad Montepío Loreto, set up as a private pension and welfare institution in 1970 by the workers in the aviation sector. Loreto is an independent institution, unrelated to any financial group, so its investments are made exclusively to obtain the best, most secure benefits for its members. It operates under a system of Individual Capitalisation, which means that the contributions made by the members are used to finance the benefits of each one and that the distribution of profit is equal for all participants.
www.montepioloreto.com
7.10 Corporate citizenship
Collaboration with the welfare organisations of Iberia employees Iberia employees participate in numerous volunteer activities, receiving logistic and economic support from the company. The solidarity initiatives undertaken by employees for several years now have given rise to the creation and development of two Associations, which have not been declared Public Utility Associations and are among the most important in Spain:
Iberia Employees Parents of Disabled Children Association – APMIB Set up in 1977 by company employees with children with special needs, this association focuses its activities on the protection and social integration of physically, mentally or sensorial handicapped children. Twenty years later, in 1997, the APMIB Foundation was set up for the protection and the social and educational assistance of the handicapped. The Foundation promotes and manages homes and other centres for the disabled who are orphans or in a situation of neglect, whatever their age. It also organises several training activities and promotes research to improve the lives of people with special needs. It is now the second largest association for the disabled in Spain, after the ONCE [National Association for the Blind], with six specialist centres in Barcelona, Madrid (2), Malaga, Las Palmas and Tenerife. Its work is no longer limited to relatives of Iberia employees, but is open to the whole society. It has a team of 140 professionals, including psychologists, doctors, social workers and support personnel, who assist more than 1,300 handicapped persons. It has six Special Employment Centres, which provide employment for 529 people. Their main occupations are the manufacturing of textile products, packaging & labelling, etc., computing and administrative coordination services. It has been supported by the company from the outset, with monetary contributions and work contracts. Approximately 38% of its turnover is obtained on sales to Iberia. Apart from work for Iberia, the APMIB centres perform activities and provide services for almost 60 companies, including Air Nostrum, AENA, Gate Gourmet and Renfe. Corporate Responsibility / Employees 411
Outstanding actions by APMIB in 2009:
In December 2009, the Home and Day Centre for Disabled Aged Over 45 with 33 places in Colmenar Viejo was finished in December 2009, including furniture and fittings. Completion of the Occupational Centre in Malaga Assignment of land and part of the financing by AENA to build a new building at c/ Ayerbe de Madrid (Barajas) Development and strengthening of digitalisation and documentation areas Continuation and development of the different Labour Insertion Projects: AILA Project, ECA Project, ARGOS Project, among others. Agreement with LIMPIEZAS INITIAL to provide cleaning service for customers
Mano a Mano
This NGO was founded in 1994 by Iberia employees to use the free space in the bellies of company flights to send humanitarian aid to countries hit by natural disasters or wars and deliver that aid without middlemen, i.e. “hand to hand” (“Mano a Mano” in Spanish). Since its creation it has sent more than 2,200 tonnes of humanitarian aid. It brings children from different countries, together with their families, to Spain for specialist medical attention. Once in Spain, Mano a Mano provides them with accommodation and anything else they may need. It also manages all sorts of aid projects in developing countries. Iberia donates air tickets and cargo space to Mano a Mano.
In 2009 the company offered employees the opportunity to buy surplus products from In-Flight Sales at bargain prices. The profit obtained was donated to the APMIB for the conditioning and purchase of furniture for the Home and Day Centre for Disabled Aged over 45, construction of which was recently finished in Colmenar Viejo. The Chairman of Iberia, Antonio Vázquez, visited the head offices of APMIB in September, where he was informed on their admirable work and enjoys contact with the persons training or working there. Iberia employees participate every year in the Blood Giving Campaign organised by the company together with the Transfusion Centre in the Community of Madrid. oneworld also organises humanitarian aid days for which it requests volunteers from the companies belonging to the alliance. The 2009 aid was spent on the building of a primary school, repair of a day centre for street urchins, decorating of a hospital for children with AIDS and the planting of vegetable patches in orphanages in Bangkok. Iberia’s social activity, which complements its solidarity and labour responsibility actions, also extends to areas such as leisure, sport and culture. Club Iberia and the Iberia Veterans Association are particularly active in this area.
The Veterans Association was founded in 1972, has 8 delegations in Spain and finances all its activities with the membership fees of over 7,000 members, in 51 national meeting points and more than 20 abroad. The services provided and activities organised by this Association are aimed primarily at members on retirement, disability or widowhood pensions. The activities organised are mainly cultural, touristic and recreational. Corporate Responsibility / Employees 412
Club Iberia is a non-profit association that aims to promote leisure and sports activities among company employees and their families, thereby fostering values such as the family, solidarity and teamwork. It currently has over 10,000 members and 12 delegations nationwide. The Club Iberia budget is funded mainly with the membership fees and an annual contribution from Iberia, which also provides premises for the Club’s offices and facilitates internal communication for all employees through IBPróxima.
7.11 Employment of disabled workers
In pursuance of the Disabled Persons Integration Act, Iberia must hire a number of disabled workers equivalent to no less than 2% of its headcount. Owing to the company’s complex productive nature, making it especially difficult to incorporate disabled workers in a sufficient number to meet that quota so it meets its legal obligation through the alternative measures regulated by Royal Decree 364/2005. These measures include commercial contracts with Special Employment Centres and donations and sponsorships in favour of Public Utility Associations. Therefore, in 2009, the quota established in respect of the total headcount was 448 persons, met through:
Employment of disabled persons: the company has provided direct employment for a total of 247 disabled workers in 2009. Commercial contracts with Special Employment Centres: A total of 5,759,193 € was invoiced under these contracts in 2008. This amount is equivalent to 215 workers. Donations and Sponsorships: in 2008, the donations in cash or in kind made to the two above-mentioned associations totalled 657,478 €, equivalent to 59 workers. This sum is itemised as follows:
Therefore, the number of disabled persons employed by Iberia, directly or through alternative measures, totals 521, exceeding the reserve quota by 73 workers. Corporate Responsibility / Society 413
8. SOCIETY
Iberia bases its social action strategy on supporting solidarity organisations, mainly through the provision of its regular services, such as transporting passengers requiring some kind of aid and assigning space in the bellies of aircraft for transporting humanitarian aid. The company has a control system to manage its contributions, enabling continuous assessment to adjust Iberia’s social actions to the established strategy. The company is committed in this regard to achieving the Millennium Development Goals. Some of Iberia’s main permanent collaborations are listed below:
Spanish International Cooperation Agency – AECID: Iberia cooperates through agreements, which include special discounts for passenger or cargo tickets on its flights. National Transplant Organisation: Iberia provides free transport of organs on its scheduled flights, with an annual average of over 80 organs. ‘Ilusiones’ Foundation: Iberia provides transport for sick children that the Foundation takes to different locations to make their dreams come true so that they recover their “will to live”. ‘Crecer Jugando’ Foundation and Radio Nacional de España - RNE: Iberia participates in the solidarity campaign “One Toy, One Joy”, the main aim of which is to send toys to children in third world or developing countries and to start up toy libraries at schools in those countries. The company transports material in the bellies of aircraft flying to certain destinations and in exchange, Fundación Crecer Jugando donates toy libraries to Iberia for the Mano a Mano centres in Peru, Ecuador, Guatemala, Cuba, Argentina and Equatorial Guinea. Special Olympics: This organisation aims to improve the quality of life of the mentally handicapped through sport. The company participates with donations with a coin collection scheme on its international flights. Sports Council – CSD: Iberia and Coca-Cola España collaborate with the CSD to organise the In-Flight Drawing Competitions for children under 12 travelling on Iberia flights. The aim is to encourage physical exercise among children, trying to transmit the essence of the values of sport: healthy life, clean play and determination to improve. Corporate Responsibility / Society 414
Sponsorship agreement with Madrid 2016 to support the candidature of the city for organisation of the Olympic Games. Iberia promoted the candidature of de Madrid throughout the world, enlisted support among customers and employees and took the official delegation to Copenhagen for the voting on 2 October. In September the company ran support campaigns for the candidature, directed at the over four million Iberia Plus holders, the 355,000 people who enter Iberia.com every day, the employees and all the veterans. Iberia secured backing from more than 10,300 people for the candidature, plus over 50,000 volunteers that the March 2016 organisation took to the IOC voting in Copenhagen.
All cooperations by Iberia during 2009 and their economic valuation can be consulted in the Annexes to this Report.
8.1 Millennium Development Goals
Iberia gears its social action to contribute, directly or indirectly, towards achievement of the Millennium Development Goals, through contributions of cash and resources to social action projects. The main collaborations in 2009 are summarised in the following table, classified according to the goal to which they contribute: Corporate Responsibility / Society 415
Iberia’s contribution to the UN Millennium Development Goals
Goal Target Main projects in 2009
Niños de Barro Project following the earthquake in Peru in 2007, to restore adults’ hope so that they will promote their own development, and so that the children are in Reduce by half the proportion of people good health and go to school. living on less than a dollar a day Building of a canteen for 360 children in Tablada de Lurin, one of the poorest districts of Lima, in Peru. In addition, Mano a Mano has purchased the machinery of a Goal 1: eradicate baker’s for this project. extreme poverty and Collaboration with the popular canteen project, run by Redeemer missionaries, in hunger Santa Anita, one of the poorest districts of Lima. The Emaús canteen in Lima had noodle manufacturing workshops, a bakery and a Reduce by half the proportion of people computer room. Iberia participates in this project helping to build also a games room. who suffer from hunger Cooperation to send toys, clothes and food to the population of Herat (Afghanistan), where the Spanish army base is situated.
The canteen in Tablada de Lurin will be panellable to double up as classrooms and Goal 2: achieve Ensure that, by 2015, all boys and girls give basic education as well as food. universal primary complete a full course of primary Permanent collaboration with schools and workshop in Quilmes, Argentina; and education schooling with the schools Hola-Hola, Español de Malabo, Santa Teresita, Luba and Batete, among others, in Equatorial Guinea.
Eliminate gender disparity in primary and Goal 3: promote Children’s Home Virgen del Perpetuo Socorro, in Lima (Peru), for abandoned girls, secondary education preferably by 2005, gender equality and many of whom have been raped and battered. Takes in over 170 girls aged 4-18. and at all levels of education by the end of empower women Collaboration with the Madre del Redentor Home, in Piura (north Peru) for 130 girls. 2015
Mano a Mano transports children on Iberia flights for surgery or medical treatment in Spain. Children from Cuba Project to meet the needs of sick children in Cuba who need constant medical treatment. They are regularly sent medicines. Goal 4: reduce child Reduce by two thirds, between 1990 and San Vicente de Pau Children’s Home, in Quito (Ecuador). Refuge for children mortality 2015, the under-five mortality rate without means or with no family. Offers protection and integral education for 140 children, some physically, mentally or psychomotor handicapped. Iberia was present at the Congress of the Spanish Pediatrics Association held in Zaragoza.
“Iberia celebrates Solidarity Christmas” Campaign. In the run-up to Christmas, Iberia gave its smallest passengers a small alpaca plane, hand made by a group of Goal 5: improve Reduce by three quarters, between 1990 women who live in hamlets in the mountains, on the banks of Lake Titicaca. These maternal health and 2015, the maternal mortality ratio women travel to Puno to do the embroidery, for which they receive a small wage, and during their trip they are given talks on nutrition, health in general and education.
Have halted by 2015 and begun to Cooperation with the organisations Basida, Remal and Sucael to help people with reverse the spread of HIV/AIDS Goal 6: combat AIDS or drug addicts in the district of Vallecas, Madrid. HIV/AIDS, malaria Contributions to Fundación Respira [Breathe Foundation], the Carlos III National and other diseases Have halted by 2015 and begun to Oncological Research Institution and the Assistance against Drug Addiction reverse the incidence of malaria and other Foundation. major diseases
Integrate the principles of sustainable See the Environment chapter of this Report. development into country policies and Iberia with Spanish protected species. All new aircraft incorporated in Iberia’s fleet programmes; reverse loss of are christened with the names of endangered species in Spain. Iberia transports environmental resources Goal 7: ensure animals of endangered species in the bellies of its aircraft to return them to their original locations for recovery in specialised centres. environmental Halve, by 2015, the proportion of people sustainability without sustainable access to safe drinking Iberia attended the European Renewable Energies Forum held in Bilbao, the Congress water and basic sanitation of the CONAMA (water, climate change, nature) Foundation in Iguazú, the “AQUA 09” Conference on water management in Madrid and the International Congress on Achieve significant improvement in lives of Energy Engineering and the Environment in Portugal. at least 100 million slum dwellers, by 2020 Develop further an open trading and financial system that is rule-based, predictable and non-discriminatory Address the least developed countries' Goal 8: Foster a special needs Commitment to the Global Compact principles. • Close cooperation with the Spanish International Cooperation and world alliance for Address the special needs of landlocked Development Agency (AECID). development and small island developing States Deal comprehensively with developing countries' debt problems through national and international measures to make debt sustainable in the long term Corporate Responsibility / Society 416
Iberia contributes towards publicising of the Millennium Development Goals and raising awareness among its stakeholders to their achievement through the initiative: “2015: A better world for Joana” of the Corporate Reputation Forum, to which Iberia belongs www.2015unmundomejorparajoana.com
Iberia and Latin America Once again, the company celebrated a Solidarity Christmas, giving its customers Christmas decorations hand made by men and women from Peruvian villages. Business customers received another special gift: a ceramic star to hang on their Christmas trees, handmade and painted by young Peruvian craftsmen and women.
8.2 Participation in associations and foundations
The company belongs to several associations and foundations related with Corporate Social Responsibility.
Corporate Reputation Forum: The Corporate Reputation Forum (fRC) was founded in September 2002; its members are currently eleven major Spanish enterprises: Grupo Agbar, BBVA, Repsol YPF, Telefónica, Abertis, Ferrovial, Gas Natural, Iberdrola, Iberia, RENFE and Metro de Madrid. The fRC is a place of encounter, analysis and spreading of trends, tools and models of corporate reputation management. All the fRC companies have signed the UN Global Compact initiative and promote achievement of the Millennium Development Goals. The interest of the fRC in reputation derives from its conviction of the impact of reputation as an element generating value for companies, their stakeholders and, ultimately, society.
www.reputacioncorporativa.org Corporate Responsibility / Society 417
Business and Society Foundation The Business and Society Foundation was set up in 1995 and receives sponsorship and strategic support from Fundación Once, Iberia and Mapfre. It encourages companies to take the initiative in respect of challenges related with the full integration in society of the underprivileged (immigration, aging, disability, local development, education, international cooperation…). It is based on the comparative analysis of Spanish companies committed to improving social integration, taking each case in context, according to its type, size and impact. It endeavours to inspire specific lines of action and encourage each company to reflect on the initiatives that make most sense considering its resources, features and circumstances.
www.empresaysociedad.org
Carolina Foundation: An institution set up in 2000, sponsored by Sogecable, PRISA, FCC, ACS, EL Corte Inglés and Iberia, among others. It promotes cultural relations and cooperation in science and education between Spain and the countries of the South American Community of Nations and with other countries with special historic, cultural or geographical ties. The 2009 Action Plan of the Carolina Foundation is based on the principle that education and research play an important role in building fairer societies and are the best guarantee for strengthening the democratic institutions and exercising responsible citizenship.
www.fundacioncarolina.es
Exceltur: A non-profit association currently consisting of 24 of the most influential Spanish tourist business groups. This association endeavours to foresee and adapt to processes of change required by the increasingly more global and demanding markets, publishing surveys related to tourism and recommendations for the future.
www.exceltur.org Corporate Responsibility / Society 418
Spanish Confederation of Business Organisations - CEOE: Iberia is a member of the Social Responsibility Commission of the CEOE along with other Spanish large enterprises and SME associations, set up as a forum for encounter and debate to analyse CSR trends on the market. In turn, it represents its members in the work group on the ISO 26000 Guidelines and in the State Council on Corporate Social Responsibility set up in February 2008 and headed by the Spanish Ministerio de Trabajo y Asuntos Sociales.
www.ceoe.es
Management Excellence Club: Iberia participates with other companies, public and private organisations and academic institutions in a workshop created in 2009, called Socially Responsible Excellence, to find solutions to incorporate social values in the strategy of organisations, as a source of opportunities and competitive edge.
www.clubexcelencia.org
Iberia and Latin America
The Euroamerica Foundation, of which Iberia is a trustee, celebrated its X Anniversary in 2009, ten years during which it has promoted projects to improve collaboration and understanding between Europe and Latin America and fostered dialogue between the two continents.
Iberia is also a trustee and founding member of FUNDIBEQ, the Latin American Quality Foundation, which develops a Management Excellence and Quality Programme attached to the Latin American Summit of Heads of State and of the Government, with the participation of large Spanish and Latin American enterprises.
8.3 Responsible investment
Iberia’s direct investment in social interest groups during 2009, considering contributions in cash and in kind, totalled 1,617,919 €. For the third year in succession, the company has also made contributions to external environmental protection projects. The breakdown of aids given by Iberia can be seen in the Annexes to this Report. Corporate Responsibility / Society 419
Investments in sponsorship arrangements, that is, collaboration agreements with sports, cultural, educational, etc. organisations, totalled 7,870,765 € in 2009.
The company sponsors at all times initiatives and events that are in line with the values with which it identifies. Some of the new initiatives in 2009 were:
Commercial agreement with the Spanish Federation of Book Chambers to transport books and educational material and assist with the travelling of professionals to cultural events related with the publishing sector. Iberia, aware of the importance of Spanish literature production, collaborates in the spreading and transportation of culture. Collaboration agreement with the Spanish Royal Academy (RAE), whereby Iberia has been nominated official carrier of the Academy, providing transport for members of the RAE and its professional collaborators in their trips to Spanish-speaking countries and the different national and European linguistic research centres. The service is extended to the representatives of the 21 associated Academies which attend events organised by the RAE. Collaboration agreement with the Friends of the Prado Museum Foundation, whereby Iberia employees and their relatives can become Friends of the Prado Museum on very beneficial economic terms, which enables them, among other benefits, to go to exhibitions without having to wait in queues and contribute to the preservation and development of one of the most important art galleries in the world.
Iberia and Latin America Iberia and Casa de América have an agreement to encourage the company’s employees and customers to go to the cinema, with discounts for the “Sala Iberia” at the Casa de América. The “Sala Iberia” is the only screen in Spain that exclusively puts on Latin American cinema. Consequently, Latin American films that are not distributed commercially can be put on and recognised by the Spanish Ministerio de Cultura. Corporate Responsibility / Society 420
DONATE YOUR MOBILE Campaign
With the slogan “There’s a lot of life left in the mobile you no longer use, DONATE IT!”, Iberia, the Spanish Red Cross and the NGO Entreculturas launched a campaign in 2009 to encourage collaboration for collecting unused mobiles from customers and employees in bags installed in dispensing machines at work places, ticket offices and VIP lounges at national airports and available on board aircraft. Once the mobile has been put into the bag, the donor can put the bag into any post box. The revenues generated from the recycling of donated mobiles are being allocated to humanitarian, social and educational projects in developing countries. Moreover, by promoting their reuse and recycling, the company is also helping to protect the environment. Corporate Responsibility / Annexes 421
ANNEXES
A.1. Development of the Global Compact Principles
A.2. Contents and Indicators according to the Global Reporting Initiative - version 3.0
A.3. Contributions made to social causes and sponsorship arrangements
A.4. Workforce and labor relations
A.5. Assurance Certificate Corporate Responsibility / Annexes 422
A.1. Development of the Global Compact Principles
THE UNITED NATIONS GLOBAL COMPACT IN THE ANNUAL REPORT ON CORPORATE RESPONSIBILITY 2009
GRI indicators Location in Report GRI indicators Categories Principles (indirect (direct relevance) > N. CHAPTER > Section > relevance) Paragraph Principle 1: Businesses should > 1. CORPORATE RESPONSIBILITY support and respect the protection LA4, LA13, LA14, > Impact analysis of internationally proclaimed HR1 - HR7 SO1 > 2. STAKEHOLDER ENGAGEMENT human rights within their area of > Public positions IBERIA AND HUMAN influence RIGHTS > 6. SUPPLIERS > Responsible Principle 2: Businesses should procurement make sure that they are not HR1, HR2 > 7. EMPLOYEES > Ethics and complicit in human rights abuses Codes of Conduct Principle 3: Businesses should > 7. EMPLOYEES > Workforce and uphold the freedom of association labour relations > Union LA4, LA5, HR5 and the effective recognition of the representation and participation & right to collective bargaining Collective Agreements Principle 4: Businesses should uphold the elimination of all forms HR7 HR1 - HR3 > 6. SUPPLIERS > Responsible IBERIA AND ITS of forced and compulsory labour procurement EMPLOYEES Principle 5: Businesses should >7. EMPLOYEES > Ethics and uphold the effective abolition of HR6 HR1 - HR3 Codes of Conduct child labour Principle 6: Businesses should uphold the elimination of HR4, LA2, LA13, HR1, HR2, EC5, EC7, > 7. EMPLOYEES > Equality discrimination in respect of LA14 LA3 opportunity and diversity employment and occupation > 1. CORPORATE RESPONSIBILITY Principle 7: Businesses should > Impact analysis support a precautionary approach EN1-EN30, EC2 > 2. STAKEHOLDER ENGAGEMENT to environmental challenges > Public positions EC2, EN1, EN3, EN4, Principle 8: Businesses should EN2, EN5 - EN7, EN8, EN16, EN17, IBERIA AND THE undertake initiatives to promote EN10, EN14, EN18, EN19, EN20, EN23, ENVIRONMENT greater environmental EN21, EN22, EN26, EN24, EN28, EN29, responsibility EN30 PR3, PR4 > 3. ENVIRONMENT > 8. SOCIETY Principle 9: Businesses should encourage the development and EN2, EN5 - EN7,
diffusion of environmentally EN10, EN18, EN26 friendly technologies Principle 10: Businesses should > 5. SHAREHOLDERS > Fraud work against all forms of ANTI-CORRUPTION SO2 - SO4 SO5 prevention and anti-corruption corruption, including extortion and measures bribery
Iberia adhered to these principles as a founding participant in 2004. More information at www.pactomundial.org Corporate Responsibility / Annexes 423
Code of Ethics for application of the Global Compact in Iberia
The Iberia employees are aware of the impact that our conduct may have on other persons, especially those with different cultures to ours. Therefore, in application of the United Nations Global Compact principles, we perform our work respecting the following ethical principles:
1. We never discriminate against anyone, for any reason: race, age, sex, beliefs, physical condition or different points of view from ours. 2. We offer our customers a correct, respectful, proactive service attitude, especially when operating incidents arise. 3. We reject any unlawful or unethical activity that we may observe and report it promptly. 4. We do not disclose confidential information of the company and never attempt to have a bearing on the commercial relations that our relatives and/or friends may have with the company. 5. We take great care to avoid any occupational accident that could affect ourselves, our colleagues or our customers. 6. We take care of the environment and encourage its protection among our customers, suppliers and colleagues. 7. We use the company’s material and intellectual assets with the utmost respect and responsibility. 8. We submit our ideas for improvement internally, so that they may be useful for the future of the company. 9. We cooperate with our colleagues whenever they ask us for help and we are able to give it, and always answer their requests as soon as possible. 10. We maintain a high level of efficiency in our work, making our employment compatible with our personal lives, and opt for good humour, respect, loyalty and kindness in all interpersonal relationships we have within our work.
These guidelines do not replace any of the agreements, codes, bylaws and rules signed by the company, but complement them and seek to help secure their fulfilment. Please send any comments or suggestions on these ethical guidelines to: [email protected] Corporate Responsibility / Annexes 424
A.2. Contents and Indicators according to the Global Reporting Initiative - version 3.0
GRI 3.0 Guidelines - Basic Content Index and Performance Indicators
Preliminary Explanations
The G3 indicators are classified into core and additional indicators. The former are those of interest for our company and most of the stakeholders. The latter represent a prominent, although not widely used, practice in measuring social, economic or environmental aspects, offer significant information for the interested parties and may be changed in the future to core indicators. According to the standard G3 A+ all the core indicators must be included, or their omission explained. The core indicators not applicable to the air transport business or to Iberia are indicated in the table Indicators Not Applicable, stating the reasons for their exclusion. Iberia has also included some indicators complementing those listed in the GRI 3.0 Guidelines, in view of their importance in its activities and compliance with the principle of transparency. Just as in earlier Reports, this report indicates the approximate correspondence of the GRI indicators with the criteria for including the company in the Dow Jones Sustainability Index (DJSI) (last columns of the tables). It is considered interesting to make that correspondence in order to identify what aspects are taken into account by the main references for the company regarding Corporate Responsibility. The indicators published in this Report cover all the areas and activities performed by the company, with no limitation on the reporting scope or boundaries. Adequate comparability of the 2009 indicators with previous years is also guaranteed. In the case of annual information in percentages, the comparison is made in percentage points (p.p.) Since 2008, a column has been added indicating the area responsible for each indicator, according to the organisation and responsibilities of Iberia’s CR Model (see chapter > 1. CORPORATE RESPONSIBILITY IN IBERIA). Corporate Responsibility / Annexes 425
Location in the Report or explanations GRI Contents Area accountable DJSI FTSE4Good Section > N. CHAPTER > Section > Paragraph
STRATEGY AND ANALYSIS
Chairman's Statement 1.1 Chairman's statement > 2. STAKEHOLDER ENGAGEMENT > Public positions
> 0. INTRODUCTION > The air transport sector CORPORATE Description of key > 0. INTRODUCTION > A year of changes for Iberia RESPONSIBILITY 1.2 impacts, risks and > 1. CORPORATE RESPONSIBILITY > Impact analysis opportunities > 1. CORPORATE RESPONSIBILITY > Corporate Responsibility Framework > Corporate Responsibility Policy
ORGANISATIONAL PROFILE
Name of reporting 2.1 Iberia, Líneas Aéreas de España, S.A. organisation Primary brands, > 0. INTRODUCTION > Profile of Iberia L.A.E. 2.2 products and/or > 5. SHAREHOLDERS > Brand Management services
> 0. INTRODUCTION > A year of changes for Iberia ALL Operational structure of > 1. CORPORATE RESPONSIBILITY > Corporate Responsibility 2.3 the organisation Framework > CR ORGANISATION AND RESPONSIBILITIES IN IBERIA Location of 2.4 organisation's c/ Velázquez, 130 - 28006 - MADRID (SPAIN) headquarters Countries where the 2.5 7. EMPLOYEES > Workforce & Labor Relations HUMAN RESOURCES organisation operates Nature of ownership 2.6 Public limited company and legal form Air Transport business: Spain, Europe, America, Africa and 2.7 Markets served Middle East MRO & Airport Services business: Con base en España, asisten a compañías aéreas de todo el mundo Scale of the reporting 2.8 > 0. INTRODUCTION > Profile of Iberia L.A.E. See also EC1 ALL organisation Significant changes 2.9 during the reporting > 0. INTRODUCTION > A year of changes for Iberia period Awards received in the > 1. CORPORATE RESPONSIBILITY > Prizes and recognitions 2.10 reporting period obtained in 2009 Corporate Responsibility / Annexes 426
Location in the Report or explanations GRI Contents Area accountable DJSI FTSE4Good Section > N. CHAPTER > Section > Paragraph
REPORT PARAMETERS
REPORT PROFILE
3.1 Reporting period 2009
Date of most recent 3.2 2008 previous report CORPORATE 3.3 Reporting cycle Anual RESPONSIBILITY Contact point for 3.4 questions regarding the [email protected] report
REPORT SCOPE AND BOUNDARY
> 1. CORPORATE RESPONSIBILITY > Corporate Responsibility Framework > CR Policy & Scopes of application Process for defining > 1. CORPORATE RESPONSIBILITY > Impact analysis 3.5 report content > 1. CORPORATE RESPONSIBILITY > External assessment See also the consultative process described in the report of 2008 (Section 1.1). Iberia, Líneas Aéreas de España, S.A. For its small size and for develop, completed activities to the parent company, 3.6 Boundary of the report mostly of the Iberia Group investee companies have no significant impacts on sustainability, except Vueling, on which there is a Commitment of Independence Specific limitations on 3.7 scope or boundary of > ANNEXES > A.2. > Indicators not applicable this report CORPORATE RESPONSIBILITY Basis for reporting on The indicators of this Report belong to Iberia L.A.E. Group 3.8 joint ventures, information can be consulted in the Financial Statements and subsidiaries, etc. Management Report 2009 - Consolidated Data measurement The indicators are calculated using internationally accepted 3.9 techniques and the methods bases of calculation Effect of any re-statements of 3.10 information provided in earlier reports There have been no changes in data or methods in respect of the previous year Significant changes from 3.11 previous reporting periods in the scope
GRI CONTENT INDEX
> CONTENTS GUIDE Location of standard CORPORATE 3.12 > 2. STAKEHOLDER ENGAGEMENT disclosures in the report RESPONSIBILITY > ANNEXES > A.2. > Contents and Indicators according to GRI
ASSURANCE
Policy and current practice with regard to CORPORATE 3.13 > 0. INTRODUCTION > About this Report seeking external RESPONSIBILITY assurance for the report Corporate Responsibility / Annexes 427
Location in the Report or explanations GRI Contents Area accountable DJSI FTSE4Good Section > N. CHAPTER > Section > Paragraph
GOVERNANCE, COMMITMENT AND ENGAGEMENT OF STAKEHOLDERS
BOARD OF DIRECTORS, Executive Committee, Audit & Compliance Committee, Nomination & 4.1 Governance structure of the organisation Remuneration Committee, Safety Committee. See Corporate Governance Report in Annual Report 2009 Indicate whether the Chair of the highest Yes, see Corporate Governance Report Section B. 1. 4.2 governance body is also an executive officer 21 Number of members of the highest 10, all except the Chairman & Managing 4.3 governance body that are independent or Director non-executive members General Shareholders' Meeting. Company Mechanisms for shareholders and employees department responsible for relations with 4.4 to provide recommendations or direction to shareholders: [email protected] the highest governance body > 7. EMPLOYEES > Workforce and labour relations GENERAL SECRETARY > Union representation and participation Linkage between compensation for members DIRECTORS: % of profit allocated on previous of the highest governance body, senior 4.5 year's results SENIOR MANAGEMENT: Variable managers, and executives and the annual by objectives organisation's performance Rules of the Board of Directors; Code of Processes in place for the highest governance Conduct in respect of matters relating to 4.6 body to ensure confl icts of interest are security markets; Nomination and avoided Remuneration Committee Process for determining the qualifications and Proposal by the Board to the General expertise of the members of the highest Shareholders' Meeting, following report by the 4.7 governance body for guiding the Nomination and Remuneration Committee. See organisation’s strategy on economic, Corporate Governance Report in Annual Report environmental, and social topics 2009 Internally developed statements of mission or > 1. CORPORATE RESPONSIBILITY > Corporate values, codes of conduct, and principles CORPORATE 4.8 Responsibility Framework > CR Policy relevant to economic, environmental, and RESPONSIBILITY > 5. SHAREHOLDERS > Good Governance social performance Procedures of the highest governance body for BOARD OF DIRECTORS approves the CR Policy. overseeing the organisation’s identification and 4.9 Audit and Compliance Committee reviews the management of economic, environmental, and annual reporting for its approval in the Board social performance GENERAL SECRETARY Nomination and Remuneration Committee. See Processes for evaluating the highest 4.10 Corporate Governance Report in Annual Report governance body’s own performance 2009 > 1. CORPORATE RESPONSIBILITY > Impact Explanation of how the precautionary approach CORPORATE 4.11 analysis or principle is addressed by the organisation RESPONSIBILITY > 5. SHAREHOLDERS > Risk Management Externally developed economic, environmental, > 7. EMPLOYEES > Corporate citizenship and social charters, principles, or other > 8. SOCIETY > Millennium Development Goals 4.12 initiatives to which the organisation subscribes > ANNEXES > A.3. > Contributions made to social ADVERTISING & or endorses and environmental causes and entities in 2009 SPONSORSHIP Main associations of which the organisation is > 8. SOCIETY > Participation in associations and 4.13 a member or which it supports foundations List of stakeholder groups engaged by the 4.14 organisation > 1. CORPORATE RESPONSIBILITY > Corporate Basis for identification and selection of Responsibility Framework > Spheres of influence 4.15 stakeholders with whom to engage CORPORATE 4.16 Approaches to stakeholder engagement RESPONSIBILITY
Key topics and concerns that have been raised > 2. STAKEHOLDER ENGAGEMENT through stakeholder engagement, and how 4.17 the organisation has responded to them through its reporting Corporate Responsibility / Annexes 428
Economic Dimension: MANAGEMENT APPROACH Location in the report: > Chapter 5 > SHAREHOLDERS Location in the report: > Chapter 6 > SUPPLIERS
Economic performance indicators Variation Location in the report 2005 2006 2007 2008 2009 2009-2008 Area accountable DJSI FTSE4Good GRI Type of Name (% or p.p.) Code indicator > N. CHAPTER > Section > Paragraph Direct economic value generated and distributed, including operating SEE ANNUAL REPORT - IBERIA EC1 Core 4,929 5,.359 5,494 5,480 4,439 -19.0% INVESTOR RELATIONS revenues and costs, (NB: operating revenues in million €) L,A,E, > 2. STAKEHOLDER Financial implications and other risks and opportunities for the ENGAGEMENT > Public positions QUALITY & EC2 Core Qualitative organisation’s activities due to climate change > 3. ENVIRONMENT > Flight ENVIRONMENT operations: climate change > 7. EMPLOYEES > Welfare EC3 Core Coverage of the organisation’s defined benefit plan obligations 100% (see also indicator LA3) HUMAN RESOURCES benefits CORPORATE EC4 Core Significant financial assistance received from government This page 00000 - RESPONSIBILITY Minimum wage (€) 7,182 7,573 7,988 8,400 8,736 4.0% Minimum wage Iberia (€) 14,684 13,930 14,635 15,147 15,147 0.0% EC5 Additional This page HUMAN RESOURCES Range of ratios of standard entry level wage compared to local minimum 104.4% 84.0% 83.2% 80.3% 73.4% -6.9 p.p. wage at significant locations of operation All significant operations for the contracting of products and Policy, practices, and proportion of spending on locally-based suppliers at > 6. SUPPLIERS > Responsible services are run from Spain (purchasing centralization), EC6 Core PURCHASING significant locations of operation procurement without implying that favors the recruitment of domestic suppliers (competing on equal terms) The company has the policy of hiring local personnel in the countries where it operates as a multinational enterprise. Procedures for local hiring and proportion of senior management hired > 7. EMPLOYEES > Equality Approximately 50% of the executives are locally hired. Hiring EC7 Core HUMAN RESOURCES from the local community at significant locations of operation opportunity and diversity personnel abroad is ruled by internal controls. See also ANNEXES > A.4. > Workforce and labor relations, by countries Development and impact of infrastructure investments and services > 8. SOCIETY > Responsable ADVERTISING & EC8 Core provided primarily for public benefit through commercial, in-kind or pro See breakdown in Annex A.3 investment SPONSORSHIP bond engagement > 1. CORPORATE Understanding and describing significant indirect economic impacts, CORPORATE EC9 Additional RESPONSIBILITY > Impact Qualitative including extent of impacts RESPONSIBILITY analysis
Ratio of revenues from flights of less than 400 km to total revenues 1.96% 1.53% 1.98% 0.32% 0.30% -0.02 p.p. > 3. ENVIRONMENT > Flight QUALITY & IBERIA's KPI operations: climate change ENVIRONMENT Tonnes of cargo carried (on regular or special traffic) 209,684 208,762 260,601 242,213 211,243 -12.8% Corporate Responsibility / Annexes 429
Ambiental Dimension: MANAGEMENT APPROACH Location in the report: > Chapter 3 > ENVIRONMENT > Environmental management in Iberia
Environmental performance indicators
FLIGHT OPERATIONS Area accountable DJSI FTSE4Good Location in the report Variation GRI Type of Name of indicator 2005 2006 2007 2008 2009 2009-2008 (% or Code indicator > N. CHAPTER > Section p.p.) > Paragraph
Fuel consumption (tonnes/year) 1,920,245 1,927,472 1,923,837 1,835,884 1,794,209 -2.27% EN3 Core Specific fuel consumption (litres/RTK) > 3. ENVIRONMENT > 0.470 0.432 0.417 0.411 0.414 0.73% Flight operations: climate EN16 Core CO2 emissions (tonnes) for all Iberia flights change 6,049,793 6,071,538 6,060,086 5,783,034 5,651,758 -2.27%
Iberia's KPI Average age of fleet (no. years) 7.95 7.92 7.66 7.13 7.30 2.38%
NOx emissions in LTO cycles (tonnes) 2,995 2,841 2,673.90 2,185.00 2,161.96 -1.05% QUALITY & > 3. ENVIRONMENT > ENVIRONMENT EN20 Core UHC emissions in LTO cycles (tonnes) Flight operations: local air 233 219 212 164 168 2.17% quality CO emissions in LTO cycles (tonnes) 1,211 1,125 1,088 944 940 -0.44%
Number and value of fines and sanctions for > 3. ENVIRONMENT > non-compliance with conventions, treaties, EN28 Core Environmental 00000 - declarations and standards on environmental management in Iberia issues
Figures calculated using internal methods. Directive 2008/101/EC is currently under study Corporate Responsibility / Annexes 430
GROUND OPERATIONS
Location in the report GRI Type of Code indicator Name of indicator 2005 2006 2007 2008 2009 Variation 2009-2008 (% or p.p.) Area accountable DJSI FTSE4Good > N. CHAPTER > Section > Paragraph
CARGO
CLASSIFICATION GROUND EQUIPMENT
Iberia's KPI Diesel vehicles 44 49 33 30 28 -6.67% Petrol vehicles 00000 - Electric vehicles > 3. ENVIRONMENT > Ground operations: greenhouse gas emissions 159 145 139 134 125 -6.72% EN3 Core Diesel consumption (litres) 102,135 91,387 79,412 64,465 43,150 -33.06%
EN4 Core Electricity consumption (J*109 ) 23,671 7,888 9,540 9,835 9,362 -4.81%
EN8 Core Water consumption (m3) > 3. ENVIRONMENT > Ground operations: consumption of resources 8,647 5,210 4,157 3,102 4,095 32.01%
EN1 Core Paper consumption (tonnes) 66 60 61 32 33 2.14%
BOILER CONSUMPTION EN3 Core Gasoil C consumption (litres) > 3. ENVIRONMENT > Ground operations: consumption of resources 626,133 560,000 697,500 738,000 721,334 -2.26%
HAZARDOUS WASTE MANAGEMENT (fluorescents, toner, batteries, oil filters, impregnated absorbers, etc.) EN24 Additional Generation (tonnes) > 3. ENVIRONMENT > Waste 2.15 3.89 6.54 3.22 3.28 1.86%
URBAN WASTE MANAGEMENT (paper/cardboard, glass, wood, organic) EN22 Core Generation (tonnes) > 3. ENVIRONMENT > Waste 270 207 213 223 211 -5.13% QUALITY & ENVIRONMENT
AIRPORT SERVICES
CLASSIFICATION GROUND EQUIPMENT
Iberia's KPI Diesel vehicles 3,325 3,484 3,373 3,373 2,479 -26.50% Petrol vehicles 88 93 52 42 26 -38.10% Electric vehicles > 3. ENVIRONMENT > Ground operations: greenhouse gas emissions 495 494 472 393 378 -3.82% EN3 Core Diesel consumption (litres) 8,551,947 7,659,755 6,548,405 6,690,692 4,449,266 -33.50%
EN4 Core Electricity consumption (J*109 ) 41,811 30,471 13,323 29,317 29,614 1.01%
EN8 Core Water consumption (m3) > 3. ENVIRONMENT > Ground operations: consumption of resources 100,796 88,073 76,242 28,257 34,852 23.34%
EN1 Core Paper consumption (tonnes) 123 109 78.0 82.0 71.7 -12.54%
EN24 Additional HAZARDOUS WASTE MANAGEMENT (oils and oil filters, solvents, batteries, shoes, polluted absorbents, cutting oils, antifreeze, polluted containers, decanter sludge, fluorescents, cells, etc.), including vehicles out of use delivered to CART Generación (Ton.) > 3. ENVIRONMENT > Waste 264 249 183.55 258.4 378.6 46.54%
EN22 Core GESTIÓN DE RESIDUOS URBANOS (papel/cartón, envases y embalajes, pallets, otros)
Generación (Ton.) > 3. ENVIRONMENT > Waste 892 1098.2 586.56 1,123.24 277.36 -75.31% Corporate Responsibility / Annexes 431
GROUND OPERATIONS
Location in the report GRI Type of Variation 2009-2008 Name of indicator 2005 2006 2007 2008 2009 Area accountable DJSI FTSE4Good Code indicator (% or p.p.) > N. CHAPTER > Section > Paragraph
INDUSTRIAL AREAS - MADRID
FUEL CONSUMPTION IN BOILERS EN3 Core Natural gas consumption (kWh) > 3. ENVIRONMENT > Ground operations: 181,808,413 144,358,672206,266,380 124,882,00191,921,933 -26.39% Gasoil C consumption (litres) consumption of resources 257,632 244,900 161,357 118,047 163,512 38.51%
ELECTRICITY GENERATION IN COGENERATION PLANT
Net total (J*109 ) 142,035 101,369 55,955 79,419 35,882 -54.82% EN4 Core % consumed in Iberia 33 27 36.24 83.96 83.65 - 0.31 p.p. % sold to grid > 3. ENVIRONMENT > Ground operations: 67 73 64 16.04 16.35 + 0.31 p.p. Natural gas consumption (kWh) consumption of resources 118,742,426 85,309,139 47,859,872 66,149,494 29,886,531 -54.82% EN4 Core TOTAL ELECTRICITY CONSUMPTION (J*109 ) 217,993 247,180 270,788 223,855 257,928 15.22% EN8 Core TOTAL WATER CONSUMPTION (m3) 557,003 414,898 376,227 403,498 405,996 0.62%
EMISIONES DE CALDERAS EN ZONAS INDUSTRIALES EN16 Core
CO2 (tonnes) 33,967 27,276 19,209 24,286 19,541 -19.54% > 3. ENVIRONMENT > Ground operations: SO (tonnes) 1.01 0.39 0.63 0.46 0.62 35.43% EN20 Core 2 greenhouse gas emissions NOx (tonnes) 32.5 25.9 18.4 22.2 17.8 -19.82%
USOS CRÍTICOS DE HALÓN QUALITY & EN19 Core kg installed in equipment 7,645 7,270 7,312 6,336 7,250 14.43% ENVIRONMENT kg used > 3. ENVIRONMENT > Ground operations: 120.00 71.15 24.92 52.05 18.63 -64.21% kg stored for this use greenhouse gas emissions 00000 - EN19 Core Use of products with VOCs in industrial areas (litres) 122,729 101,101 110,074 113,651 118,351 4.14% EN22 Core URBAN WASTE GENERATION (tonnes) (paper & cardboard, timber, not separated) 1,250 1,487 1,537 1,555 1,322 -14.98% > 3. ENVIRONMENT >Ground operations: HAZARDOUS WASTE GENERATION (washing water, paints, solvents, metals in solution, oils, polluted EN24 Additional waste 17,496 16,362 15,013 13,760 14,387 4.56% containers and absorbers, hydroxide sludge, residual kerosene, WEEE, etc.) (tonnes) (*)
COMMON TO ALL GROUND OPERATINOS
Urban waste management (%)
Re-use 0 0 0 0.7 0.0 - 0.7 p.p. EN22 Core Recycling > 3. ENVIRONMENT >Ground operations: 29 28 27.4 21.8 27.2 + 5.6 p.p Recovery waste 0 1.9 2.1 1.1 0.6 - 0.5 p.p Elimination 71.0 70.1 70.5 76.4 72.2 - 4.2 p.p
Hazardous waste management (%)
Re-use 9 9 0.0 0.0 0.0 - EN24 Additional Recycling > 3. ENVIRONMENT >Ground operations: 21 21 0.2 0.2 0.3 + 0.1 p.p. Recovery for energy purposes waste 24 24 5.5 2.3 3.4 + 1.1 p.p. Safe deposit 46 46 94.3 97.5 96.3 - 1.2 p.p. (*) Includes industrial effluent (95% of hazardous waste) Corporate Responsibility / Annexes 432
GENERAL ENVIRONMENTAL ASPECTS
Location in the report Area accountable DJSI FTSE4Good GRI Type of Variation 2009-2008 (% Name of indicator 2005 2006 2007 2008 2009 Code indicator > N. CHAPTER > Section or p.p.) > Paragraph > 3. ENVIRONMENT > Owing to the peculiarities of the aviation sector, the applicable technical standards Percentage of materials used that are recycled EN2 Core Ground operations: and prevailing safety parameters, no recovered materials are used, only original input materials consumption of resources materials > 3. ENVIRONMENT > Energy saved due to conservation and efficient EN5 Additional Flight operations: climate -5.24% -8.09% -3.47% -1.44% 0.73% + 0.71 p.p. improvements change Initiatives to provide energy-efficient or renewable QUALITY & energy-based products and services, and reductions EN6 Additional See also innovations projects on chapter >4. COSTUMERS ENVIRONMENT in energy requirements as a result of these > 3. ENVIRONMENT > initiatives Environmental management in Iberia Initiatives to reduce indirect energy consumption EN7 Additional See indicators EN6, EN18 and EN26 and reductions achieved > 3. ENVIRONMENT > Percentage and total volume of water recycled an EN10 Additional Ground operations: 00000 - reused consumption of resources EN13 Additional Habitats protected or restored > 3. ENVIRONMENT > The indirect emissions produced in Iberia are included in the indicators EN16 and ADVERTISING & Strategies, current actions and future plans for EN14 Additional Nature protection EN20, and in the emissions inventory SPONSORSHIP managing impacts on biodiversity Other relevant indirect greenhouse gas emissions The indirect emissions produced in Iberia are included in the indicators EN16 and EN17 Core by weight > 3. ENVIRONMENT > EN20, and in the emissions inventory Flight operations: climate Initiatives to reduce greenhouse gas emissions and EN 18 Additional change Check variation 2005-2009 of the environmental KPIs reductions achieved
Total water discharge by quality and destination 168,832 142,048 120,792 102,790 106,115 3.23% EN21 Core > 3. ENVIRONMENT > (m3) All effluent is treated in accordance with legal requirements Ground operations: waste EN23 Core Total number and volume of significant spills 0 0 0 0 0 - QUALITY & Initiatives to mitigate environmental impacts of > 3. ENVIRONMENT > See also Iberia's KPI (Average age of fleet ) and indicators EN16 and EN20 to check ENVIRONMENT EN26 Core products and services and extent of impact Flight operations: climate reductions mitigation change Significant environmental impacts of transporting > 3. ENVIRONMENT > products and other goods and materials used for EN29 Additional Ground operations: See CO emissions inventory the organisation’s operations, and transporting 2 greenhouse gas emissions members of the workforce > 3. ENVIRONMENT > Total environmental protection expenditures and EN30 Additional Environmental 3,139 3,926 2,869 3,995 6,000 50.19% investments by type (thous. euro) management in Iberia Corporate Responsibility / Annexes 433
CO2 EMISSIONS INVENTORY ACCORDING TO GHG PROTOCOL METHODS
Emissions GEIs (tCO2 ) Emissions per employee* (tCO2 /employee) GHG Protocol Scope Types of emission Variation 2009 - Variation 2009 - 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2008 2008 Boilers and generator sets (natural gas) 55,542 42,443 46,963 35,303 22,510 -36.24% 2.16 1.70 1.99 1.57 1.06 -32.62% Boilers and generator sets (diesel) 2,383 2,171 2,316 3,372 2,386 -29.23% 0.09 0.09 0.10 0.15 0.11 -25.22% Direct emissions (Scope 1) Vehicles owned or rented by Iberia (petrol) 56 55 38 38 15 -60.30% 0.002 0.002 0.002 0.002 0.001 -58.05% Vehicles owned or rented by Iberia (diesel) 23,193 20,773 17,763 17,722 12,040 -32.07% 0.90 0.83 0.75 0.79 0.57 -28.21% Indirect emissions (Scope 2) Electricity consumption 37,875 34,423 36,135 26,304 26,391 0.33% 1.47 1.38 1.53 1.17 1.24 6.02% Travel to work in private vehicle 19,375 18,833 17,744 16,930 16,021 -5.36% 0.75 0.75 0.75 0.75 0.75 0.00% Other indirect emissions Travel to work in bus 9,328 9,067 8,542 8,150 7,713 -5.36% 0.36 0.36 0.36 0.36 0.36 0.00% (Scope 3) Travel to work in train/underground 5,550 5,395 5,083 4,850 4,590 -5.36% 0.22 0.22 0.22 0.22 0.22 0.00% Total Scope 1 (direct emissions) 81,174 65,441 67,079 56,435 36,951 -34.52% 3.15 2.61 2.84 2.51 1.74 -30.81% Total Scope 2 (indirect emissions) 37,875 34,423 36,135 26,304 26,391 0.33% 1.47 1.38 1.53 1.17 1.24 6.02% Total (scope 1+2+3) 34,253 33,294 31,369 29,930 28,324 -5.36% 1.33 1.33 1.33 1.33 1.33 0.00% Totals Total (alcance 1+2+3) 153,303 133,159 134,583 112,669 91,667 -18.64% 5.95 5.32 5.71 5.01 4.31 -14.03% Total (including flight operations, which are 6,203,096 6,204,697 6,194,669 5,895,703 5,743,425 -2.58% 241 248 263 262 270 2.94% scope 1)
* Although the total CO2 emissions were reduced by 2.58%, emissions per employee have increased due to the declining workforce by 5%. Not including flight operations, the emissions covered were reduced by 18% and emissions per employee by 14%. Corporate Responsibility / Annexes 434
Social Dimension / Labor practices and ethics: MANAGEMENT APPROACH Location in the report: > Chapter 7 > EMPLOYEES
Social performance indicators
Area Location in the report Variation DJSI FTSE4Good GRI Type of accountable Name of indicator 2005 2006 2007 2008 2009 2009-2008 (% Code indicator > N. CHAPTER > Section or p.p.) > Paragraph
Workforce
Ground 19,503 19,068 17,548 16,678 15,743 -5.61% Flight 6,247 5,961 6,034 5,822 5,550 -4.67% TOTAL workforce 25,750 25,029 23,582 22,500 21,293 -5.36% Average seniority (years) 14.72 14.29 13.98 15.75 16.73 6.22% LA1 Core Average age of workforce (years) 42.0 41.9 41.7 42.5 43.5 2.21% > 7. EMPLOYEES > Type of contract Workforce & labor relations Permanent 20,651 19,948 21,068 18,843 18,164 -3.60% Permanent part-time 1,519 1,827 1,177 1,732 1,747 0.87% Permanent discontinuous 180 175 40 17 2 -88.24% Temporary 3,373 3,079 2,474 1,908 1,380 -27.67% Total no. employees & average rate of employee turnover, by age group, gender and LA2 Core See breakdowns in Annex A.4 . and age pyramid graphic in > 7. EMPLOYEES> Equality opportunities and diversity. region Welfare benefits provided to full-time employees that are not provided to temporary or > 7. EMPLOYEES > Temporary employees enjoy the same welfare benefits as permanent employees (medical assistance, access to LA3 Additional part-time employees, by major operations Welfare benefits grants, suggestion box prizes, special payslips, meal vouchers and free tickets, among others) LA4 Core Percentage of employees covered by collective bargaining agreements Almost 100% (see Annex A.4. for exceptions)
Percentage union affiliation (%) HUMAN RESOURCES Ground > 7. EMPLOYEES > 57.5 68.3 69.8 72.2 73.0 + 0.8 p.p. INDICADOR IBERIA Workforce & labor Pilots relations 100 100 100 100 100 - Flight attendants 31.3 31.5 31.7 31.3 31.7 + 0.4 p.p. Minimum notice periods regarding significant operational changes, including whether Spanish law contemplates cases in which minimum notice is required when the company makes a substantial LA5 Core it is specified in collective agreements modification of its employees’ working conditions. No such changes have taken place in Iberia in 2009. 100 % (24 100 % (21 100 % (22 101 % (22 Percentage of total workforce represented in formal joint management-worker health committees & committees & 87 committees & committees & LA6 Core and safety committees that help monitor and advise on occupational health and safety 100% - 108 prevention prevention 105 prevention 105 prevention programmes delegates) delegates) delegates) delegates) Rate of absenteeism for ordinary disease and occupational accident New indicator from 2008 5.1% 5.3% + 0.2 p.p. Occupational disease 0 0 0 0 0 - LA7 Core Number accidents at or on the way to or from work > 7. EMPLOYEES > Health 2,724 2,591 2,142 1,878 2,703 43.93% & safety at work Number of days’ sick leave for occupational accidents or in intinere New indicator from 2008 35,404 31,974 -9.69% Number of work-related fatalities 0 0 0 0 1 (in itínere) 100.00% Education, training, counselling, prevention & risk-control programmes in place to LA8 Core assist employees, their families or community members regarding serious diseases 481 747 805 844 294 -65.17% (number of courses given) LA9 Additional Health & safety topics covered in formal agreements with trade unions 100% (See also LA6 and Annex A.4.) Corporate Responsibility / Annexes 435
Social performance indicators
Area Location in the report DJSI FTSE4Good GRI Type of Variation 2009-2008 accountable Name of indicator 2005 2006 2007 2008 2009 Code indicator > N. CHAPTER > Section > (% or p.p.) Paragraph
Training: total no. courses 11.079 10.777 11.919 11.817 10.552 -10,70%
Training: total no. participants 80.355 68.625 70.475 82.834 74.481 -10,08%
Average hours by employee category
Managers & Engineers 8 14.4 80.02% LA10 Core Pilots 67 43.6 -34.89%
Flight assistants New indicators from 2008 24 21.3 -11.42%
Technical staff/Specialists 28 43.7 56.07% > 7. EMPLOYEES > Training & Administrative/Auxiliary Services Development 34 13.5 -60.33%
Work experience programmes
Novations employee contracts 7 9 10 9 10 11.11% Iberia's KPI No. scholarships: graduates, undergraduates, vocational training 178 229 334 414 427 3.14% HUMAN No. people with work experience contracts 69 31 67 81 40 -50.62% RESOURCES Programmes for skills management and lifelong learning that LA11 Additional support the continued employability of employees and assist Qualitative them in managing career endings
> 7. EMPLOYEES> Satisfaction, % employees receiving regular performance and career LA12 Additional internal communication & 100%, regulated by collective agreements - development reviews motivation
Igualdad de oportunidades (Ver desglose en el Anexo A.4.)
% Women 36.8% 37.2% 38.5% 38.3% 38.0% - 0.3 p.p. > 7. EMPLOYEES > Equality LA13 Core % Men 63.2% 62.8% 61.5% 61.7% 62.0% + 0.3 p.p. opportunity & diversity No. women in positions of responsibility > ANNEXES > A.4. > Workforce 131 139 146 161 128 (*) -20.50% by qualification and gender No. women in the Board of Directors 0 0 0 0 0 -
Salary is the same for men and women at the different employee LA14 Core Ratio of basic salary of men to women by employee category levels, regulated by collective agreements
(*) In 2009 there was an organizational change with a corresponding reduction in the total number of 19.31% Corporate Responsibility / Annexes 436
Social Dimension / Human Rights: MANAGEMENT APPROACH Location in the report: > Chapter 6 > SUPPLIERS. Location in the report: > Chapter 7 > EMPLOYEES
Social performance indicators
Location in the Area DJSI FTSE4Good GRI Type of report accountable Name of indicator 2005 2006 2007 2008 2009 Variation 2009-2008 (% or p.p.) Code indicator > N. CHAPTER > Section > Paragraph Percentage and total number of significant investment agreements that HR1 Core include human rights clauses or that have undergone human rights 6. SUPPLIERS > 100% (Iberia requires the inclusion of a number of clauses in its contracts with suppliers, whereby the supplier undertakes screening. Responsible “not to infringe any of the principles established in the UN Global Compact, of which Iberia is a member, and to offer in the PURCHASING Percentage of significant suppliers and procurement performance of its duties effective compliance with all obligations deriving therefrom”) contractors that have undergone HR2 Core screening on human rights and actions taken. Total hours of employee training on The content of training is not only related to the development of skills associated with the job, but also the alignment policies and procedures concerning 7. EMPLOYEES > between that content and the strategic goals of the company, such as respect for the environment and human rights. These HR3 Additional aspects of human rights that are Training & aspects are addressed in all company management courses and in on-the-job training. Estimated 3 hours of training per relevant to operations, including Development year for approximately 7,000 employees. See also indicators HR6 and HR7. To reach all employees, Iberia has launched a percentage of employees trained Code of Ethics. See Annex A.1. Total number of incidents of HR4 Core 00000 - discrimination and actions taken. Operations identified in which the right to exercise freedom of association and HR5 Core collective bargaining may be at None. See indicator LA4 significant risk, and actions taken to HUMAN support these rights. RESOURCES Operations identified as having > 1. CORPORATE significant risk for incidents of child RESPONSIBILITY > HR6 Additional labour, and measures taken to Impact analysis contribute to the elimination of child labour. Iberia joined the UN Global Compact in 2004 and includes a clause requiring compliance with its Principles in all its contracts. Operations identified as having significant risk for incidents of forced or HR7 Core compulsory labour, and measures taken to contribute to the elimination of forced or compulsory labour. Percentage of security personnel trained in the organisation’s policies or > 6. SUPPLIERS > HR8 Additional procedures concerning aspects of Responsible 100%. See indicator HR2 PURCHASING human rights that are relevant to procurement operations Corporate Responsibility / Annexes 437
Social Dimension / Society: MANAGEMENT APPROACH Location in the report: > Chapter 5 > SHAREHOLDERS Location in the report: > Chapter 8 > SOCIETY
Social performance indicators
Location in the report Area accountable DJSI FTSE4Good GRI Type of Variation 2009-2008 (% or Name of indicator 2005 2006 2007 2008 2009 Code indicator > N. CHAPTER > Section > p.p.) Paragraph Nature, scope and effectiveness of any programmes > 3. ENVIRONMENT > Flight As a result of fleet renewal, actions in operations and environmental and practices that assess and manage the impacts of operations: local air quality QUALITY & SO1 Core management systems implemented in the company, the impact of operations operations on communities, including entering, > 3. ENVIRONMENT > Noise in ENVIRONMENT in areas around the airport, noise and emissions is reduced year on year. operating and exiting the company the vicinity of the airport Percentage and total number of business units SO2 Core 100% 100% 100% 100% 100% - analysed for risks related to corruption > 5. SHAREHOLDERS > Fraud Percentage of employees trained in the 100% of employees with responsibility in internal management and budget prevention and anti-corruption SO3 Core organisation’s anti-corruption policies and control: training on the job. Furthermore, the Code of Ethics for application of measures procedures the Global Compact principles is addressed to all employees. > 5. SHAREHOLDERS > Good CORPORATE Governance There have been no significant cases in 2009. The obligations and actions to be RESPONSIBILITY SO4 Core Actions taken in response to incidents of corruption taken in the event of breah are set out in the corporate governance regulations and collective agreements. > 2. STAKEHOLDER Public policy positions and participation in public SO5 Core ENGAGEMENT > Public Qualitative policy development and lobbying positions Total value of financial contributions and SO6 Additional contributions in kind made to political parties or 00000 - related institutions, by countries This page Total number of legal actions for anti-competitive SO7 Additional behaviour, anti-trust and monopoly practices and 0001 (+)0 - INVESTOR their outcomes RELATIONS Monetary value of significant fines and total number of non-monetary sanctions. (In million €, total operating expenses in indemnities for passengers & > 4. COSTUMERS > Iberia 35.5 51.6 37.0 33.0 25.0 -24.24% passengers: the essence of our SO8 Core baggage, in pursuance of Regulation (EC) No 261/2004. existence > Commitment to passenger rights INNOVATION & Total No. of non-monetary sanctions 0 0 0 0 0 - BUSINESS RISKS (+) In 2008 the Supreme Court confirmed a fine of €3.6 million imposed by the Fair Trading Court on Air Europa, Iberia and Spanair, and the agencies of the Leading Spanish Travel Agencies (CAAVE), for fixing charges for the issuance of air tickets in 2005. Corporate Responsibility / Annexes 438
Social Dimension / Product Responsibility: MANAGEMENT APPROACH Location in the report: > Chapter 4 > COSTUMERS
Social performance indicators
Location in the report Variation Area accountable DJSI FTSE4Good GRI Type of Name of indicator 2005 2006 2007 2008 2009 2009-2008 (% Code indicator > N. CHAPTER > Section > Paragraph o p.p.)
Life cycle stages in which customer health and safety > 4. COSTUMERS > Iberia passengers: the impacts of products and services are assessed for essence of our existence > Commitment to PR1 Core 100% 100% 100% 100% 100% - improvement, and percentage of significant products and quality services categories subject to such procedures > 4. COSTUMERS > Iberia passengers: the essence of our existence > Commitment to Health Total number of incidents of non-compliance with > 4. COSTUMERS > Guarantees for all our regulations and voluntary codes concerning health and PR2 Additional customers > Safety 00000 - safety impacts of products and services during their life > 6. SUPPLIERS > Specific relationships in the air MARKETING & cycle, by types of outcomes transport sector COSTUMER LOYALTY Type of product and service information required by PR3 Core procedures and legislation and percentage of products > 4. COSTUMERS > Iberia passengers: the 100% 100% 100% 100% 100% - and services subject to such information requirements essence of our existence > Commitment to passenger rights, Commitment to price Total number of incidents of non-compliance with transparency, Dealing with passengers with special 1 PR4 Additional regulations and voluntary codes concerning product and 0000 - needs (++) service information and labelling, by type of outcomes > 4. COSTUMERS > Iberia passengers: the Practices related to customer satisfaction, including results QUALITY & PR5 Additional essence of our existence > Commitment to Qualitative of surveys measuring customer satisfaction ENVIRONMENT quality Programmes for adherence to laws, standards and PR6 Core voluntary codes related to marketing communications, > 4. COSTUMERS > Iberia passengers: the Qualitative including advertising, promotion and sponsorship essence of our existence > Commitment to price ADVERTISING & transparency Total number of incidents of non-compliance with SPONSORSHIP regulations and voluntary codes concerning marketing > 4. COSTUMERS > Guarantees for all our 1 (0 1 (0 PR7 Additional 000 - communications, including advertising, promotion and customers > Ethical advertising euros) euros) sponsorship, by type of outcomes > 4. COSTUMERS > Iberia passengers: the Total number of substantial complaints regarding breaches INNOVATION & PR8 Additional essence of our existence > Commitment to 00000 - of customer privacy and losses of customer data BUSINESS RISKS passenger rights Monetary value of significant fines for non-compliance > 4. COSTUMERS > Iberia passengers: the CORPORATE PR9 Core with laws and regulations concerning the provision and use essence of our existence > Dealing with 00000 - RESPONSIBILITY of products and services of the organisation passengers with special needs (++) Judgement of the Court of Madrid by refusing onboard unaccompanied three people with hearing impairment in a flight from Melilla to Madrid in 2004. Iberia and Air Nostrum accepted the terms of the decision: to amend their rules and pay the symbolic sum of 1 euro for each person. Corporate Responsibility / Annexes 439
INDICATORS NOT APPLICABLE Area responsible Type of GRI Code Name of indicator Reason indicator There are no significant impacts in Iberia. Water sources significantly affected by The water used by Iberia is obtained EN9 Additional withdrawal of water exclusively from the local mains; no wells or own withdrawal points are used. Description of land adjacent to or in protected areas or areas of high biodiversity value outside protected areas. EN11 Core State location and size of land owned, "Iberia does not operate on land in or leased or managed in areas of high adjacent to protected natural spaces or biodiversity value areas of high biodiversity. Description of significant impacts of activities, products and services on Moreover, Iberia does not represent a EN12 Core biodiversity in protected areas or areas of threat to the species included on the IUCN high biodiversity value outside protected Red List and national lists, since the areas company’s operations are not performed in the habitats of these species. See Number of IUCN Red List species and indicator EN13. QUALITY & national conservation list species, with ENVIRONMENT EN15 Additional habitats in areas affected by operations, by Similarly, Iberia’s activities do not affect the level of extinction risk, indicating the water resources and related habitats. In degree to which the species is threatened addition, the company’s effluent is way Identity, size, protected status and below the limits established in current biodiversity value of water bodies and legislation." EN25 Additional related habitats significantly affected by the reporting organisation’s discharges of water and runoff This indicator is not applicable to air transport activities. This notwithstanding, it is worth noting the resources saved Percentage of products sold and their through the issuing of electronic tickets, for EN27 Core packaging materials that are receaimd at both passenger and cargo services, and the the end of their useful life, by category ground operation waste management, which are described in the Environment chapter of this report. The international structure of the company Total number of incidents of violations performs exclusively commercial and HUMAN HR9 Additional involving rights of indigenous people and administrative duties at urban zones, so RESOURCES actions taken there are no material impacts in these aspects. Corporate Responsibility / Annexes 440
A.3. Contributions made to social causes and sponsorship arrangements
2009 / TOTAL CONTRIBUTIONS MADE BY IBERIA TO SOCIAL ENTITIES AND CAUSES: 1,617,919 €
Valoration in Entity Collaboration Euro kind (€) Remittance of humanitarian aid (118,120 kilos) 144,226
Mano a Mano Cooperation in its projects (4 tickets) 6,159 Medical assistance for foreign children in Spain 23,913
Carriage of goods (83,109 kilos) 84,713
Annual non-repayable aid 72,121
Christmas Campaign 2008 “bid for them” 36,041 APMIB Donation Internal Social Fund of Ground Staff 144,243
Company contribution by Flight Assistants 118,331
Cooperation in its projects (20 tickets) 12,684
Agencia Española de Cooperación Internacional Collaboration in all activities and projects 800,000 AECID
Fundación Europa Nostra Charity Dinner 1,950 Donation 600 CRUZ ROJA ESPAÑOLA Transfer to Brazil of a girl after being operated 14,315
Marcha Mundial por la Paz Tickets for journalists covering the event 9,296
Fundación Empresa y Sociedad Cooperation in its activities 4,263
Fundación Ilusiones Cooperation in its projects with sick children 30,000
Fundación "You First" Transport of 10 computers to Dakar 516
Centro Internacional de Toledo para la Paz Cooperation in its activities 50,000
Foro de Reputación Corporativa Cooperation in its activities 31,800
Fundación de Ayuda contra la Drogadicción Cooperation in its activities 30,500
Asociación Española contra el Cáncer Donation 600
Ruta de la sonrisa Approval of 70 kgs. excess baggage 150
Delegación española de la OTAN en la U.E Charity bazaar 1,498
TOTAL 407,999 1,209,920
Otras: Recaudación a bordo para Special Olympics: donación clientes 2.188
Organización Nacional de Trasplantes:
Transporte de 83 órganos para trasplante
2009 / TOTAL CONTRIBUTIONS MADE BY IBERIA TO ENVIRONMENTAL PROJECTS: 675 €
Valoration in Entity Collaboration Euro kind (€) Embajada de Cuba Transfer to Cuba of endangered reptile 545
Consejería de medio ambiente de Andalucía Transfer of the alligator tiznada from Seville to Tenerife 130
TOTAL 675
Acknowledgement
Iberia would like to thank all the customers, shareholders, suppliers, institutions and employees who selflessly cooperate with the socially responsible initiatives and projects run by the company every year. Corporate Responsibility / Annexes 441
Sponsorship Arrangements 2009
Total investment (Euro): 7,870,765
SOCIAL ENTITIES € EDUCATION € Agencia Española de Cooperación Internacional C.R.U.E Fundación You First Foundation Fundación Carolina Centro Internacional de Toledo para la Paz Premio Ingeniero Rafael de Ureña Cruz Roja Española Instituto de Empresa Fundación Ilusiones Universidad Rey Juan Carlos Fundación de Ayuda contra la Drogadicción Universidad de Alcalá de Henares Fundación Ulls del Mon Fundación Ecomar TOTAL 1,958,515 TOTAL 1,166,022
ART & CULTURE € SPORT € Asociación Bilbaína de Amigos de la Ópera CETURSA Sierra Nevada Pilgrim Pictures Media Pilates Day Asociación Cultural Aldivia XXII Trofeo de orientación "Martin Kronlund" Casa de América Vuelta al Mundo de Vela (Volvo Ocean Race) Art Fair TOTAL 3,007,165 Círculo de Bellas Artes Fundación Cristobal Gabarrón HEALTH € Fundación Gran Teatre del Liceu de Barcelona Centro Nacional de Investigaciones Oncológicas Carlos III Fundación Isacc Albéniz Barcelona Centro Médico Fundación Juan March Fundación Respira Fundación Museo Guggenheim de Bilbao TOTAL 105,000 Fundación Príncipe de Asturias Cortometraje "El milagro de la pupuna y los aviones" TOURISM € SEACEX Oficina de Turismo de Centroamérica I.E.S.E. Asociación EXCELTUR Instituto Cervantes TOTAL 49,585 Instituto Valenciano de Arte Moderno
Egeda-Premios José María Forqué MEDIA € Fundación First Team Asociación Prensa de Segovia Fundación Carlos de Amberes Federación Gremios Editores de España José Manuel Ciria Onda Cero - Premios "Protagonistas" Fest. Int. De Música Clásica de Villanueva de los Infantes Telemadrid - Prgrama "Madrileños por el mundo" Madrid Fusión - Jornadas Gastronómicas Asociación de Periodistas Europeos Asociación Cultural Romanza TOTAL 86,405 Organización de Estados Iberoamericanos
Museo del Prado OTHERS € Orfeón Donostiarra Asociación de Marcas Renombradas Españolas Semana Internacional de Cine de Valladolid Infinitconsulting OEPLY Fundación Ideas Fundación Francisco Godia Gate Gourmet Fundación Pablo Iglesias Embajada de Guatemala - Fiesta de Navidad TOTAL 944,146 Instituto de Consejeros-Administradores
Fundación Dña. María de las Mercedes SOCIOECONOMIC DEVELOPMENT € Fundación Empresa y Sociedad Asociación Plan Estratégico Metropolitano de Barcelona Foro de Reputación Corporativa Centro Iberoamericano de Desarrollo Estratégico Urbano (CIDEU) TOTAL 362,565 Club de Madrid Fundación Sistema Fundación Madrid Excelente Management Focus Fundación CIDOB Fundación Rayet Asociación Española de Accionistas Minoritarios de Empresas Cotizadas Asociación de Creadores de Moda de España Feria ágora sobre salud laboral Fundación EOI Fundación SISTEMA IESE/Instituto Estudios Superiores de Empresa Fundación Euroamérica Real Instituto Elcano de Estudios Internacionales y Estratégicos Fundación Iberoamericana para la gestión de la calidad (FUNDIBEQ) TOTAL 191,362 Corporate Responsibility / Annexes 442
A.4. Workforce and labor relations
By countries:
Country No. employees at 31-12-09 Collective Agreements Union Representation
GERMANY 60 ARGENTINA 68 AUSTRIA 4 BELGIUM 16 BRAZIL 109 CHILE 31 COLOMBIA 9 COSTA RICA 9 CUBA 15 DENMARK 7 SPAIN 20,432 USA 45 ECUADOR 24 EGYPT 9 FRANCE 53 GREECE 10 GUATEMALA 10 ECUATORIAL GUINEA 8 HOLLAND 15 IRELAND 3 ISRAEL 17 ITALY 54 MOROCCO 14 MEXICO 50 NIGERIA 1 PANAMA 8 PARAGUAY 2 PERU 23 POLAND 2 PORTUGAL 24 PUERTO RICO 7 UNITED KINGDOM 43 CZECH REPUBLIC 2 DOMINICAN REPUBLIC 21 RUMANIA 2 RUSSIA 7 SENEGAL 8 SOUTH FRICA 10 SWEDEN 4 SWITZERLAND 18 TURKEY 7 URUGUAY 5 VENEZUELA 27
TOTAL WORKFORCE 21,293 Corporate Responsibility / Annexes 443
By group, age and seniority:
Group No. of persons Average age Average seniority
Ground (Spain) 14,862 43.65 16.94 Cabin crew 3,910 41.71 16.47 Pilots 1,640 46.00 17.12 Local staff abroad 861 43.46 13.35 Spanish abroad 20 46.05 21.40
TOTAL 21,293 43.47 16.73
By Business Unit:
Area Ground Flight Total
CORPORATE 1,122 n.a. 1,122 AIR TRANSPORT 2,871 5,550 8,421 AIRPORTS 7,926 n.a. 7,926 MAINTENANCE 3,824 n.a. 3,824
TOTAL 15,743 5,550 21,293
By Type of Contract:
Type of contract
PERMANENT 18,164 PERMANENT PART-TIME 1,747 PERMANENT DISCONTINUOUS 7,926 TEMPORARY 2
TOTAL 21,293 Corporate Responsibility / Annexes 444
By Qualification and Gender:
WOMEN MEN TOTAL GROUP No. % No. % No. %
SENIOR MANAGERS 1 10.00% 9 90.00% 10 0.05% MANAGERS AND ENGINEERS 431 38.93% 676 61.07% 1,107 5.20% AIRCRAFT MAINTENANCE TECHNICIANS 32 1.09% 2,891 98.91% 2,923 13.73% GROUND EQUIPMENT MAINTENANCE TECHNICIANS 0.00% 9 100.00% 9 0.04% FACILITY MAINTENANCE TECHNICIANS 0.00% 18 100.00% 18 0.08% IT MAINTENANCE TECHNICIANS 26 21.67% 94 78.33% 120 0.56% DATA PROCESS TECHNICIANS 7 14.58% 41 85.42% 48 0.23% ADMINISTRATIVE 3,657 66.37% 1,853 33.63% 5,510 25.88% PVT 38 36.54% 66 63.46% 104 0.49% AUXILIARY SERVICES 455 9.04% 4,578 90.96% 5,033 23.64%
SUBTOTAL GROUND (a) 4,646 31.24% 10,226 68.76% 14,872 69.84%
LOCAL STAFF ABROAD 449 52.15% 412 47.85% 861 4.04%
SUBTOTAL GROUND (b) 449 52.15% 412 47.85% 861 4.04%
TOTAL GROUND (C) 5,096 32.37% 10,647 67.63% 15,743 73.94%
PILOTS 60 3.66% 1,580 96.34% 1,640 7.70% CABIN CREW 2,935 75.06% 975 24.94% 3,910 18.36%
SUBTOTAL FLIGHT (D) 2,995 53.96% 2,555 46.04% 5,550 26.06%
TOTAL (C + D) 8,091 38.00% 13,202 62.00% 21,293 100.00% Corporate Responsibility / Annexes 445
A.5. Assurance Certificate